Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) (Click the icon to view the actual results.) Read the requirements, Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. ) DM price variance = - Standards Direct materials (resin) Direct labor ...... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead. Standard fixed MOH rate 8 pounds per pot at a cost of $5.00 per pound 2.0 hours at a cost of $23.00 per hour $7.00 per direct labor hour $9,000 $5.00 per direct labor hour (DLH) Actual Results Chic Design allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,200 flower pots: Purchased 10,240 pounds at a cost of $5.40 per pound; Direct materials .. used 9,840 pounds to produce 1,200 pots Worked 2.4 hours per flower pot (2,880 total DLH) at a Direct labor..... ..cost of $21.00 per hour Actual variable manufacturing $7.30 per direct labor hour for total actual variable overhead .manufacturing overhead of $21,024 Actual fixed manufacturing overhead $8,600 Standard fixed manufacturing overhead allocated based on actual production $ 12,000 -- Requirements 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances