Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) B (Click the icon to view the actual results.) Read the requirements 12 pounds per pot at a cost of Direct materials. (resin) $6.00 per pound 4.0 hours at a cost of $22.00 per Direct Jabor ........ .... hour Standard variable manufacturing overhead rate $4.00 per direct labor hour Budgeted fixed manufacturing overhead..... 5107,200 $13.00 per direct labor hour Standard fixed MOH.rate.. ..(DLH) Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive nur 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 Print Done Actual Results - X Requirements 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 2,100 flower pots: Purchased 26,430 pounds at a cost of $6.50 per pound; Direct materials used 25,830 pounds to produce 2,100 pots Worked 4.3 hours per flower pot (9,030 total DLH) at a Direct labor... cost of $21.00 per hour Actual variable manufacturing $4.40 per direct labor hour for total actual variable overhead .......... manufacturing overhead of $39.732 Actual fixed manufacturing overhead $106,600 Standard fixed manufacturing overhead allocated based on actual production.......................$109,200 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. Print Done