Chic Design is a manufacturer of large flowerpots for urban settings. The company has these standards:

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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 $1,000$ flowerpots:

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Requirement $1.$ Compute the variable manufacturing overhead variances. What do each of these variances tell management? $($Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable $($F$)$ or unfavorable $($U$)$ in the input field after the amount you enter.$)$

Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead.

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Standard Price and Volume

Direct materials $($resin$)$

Direct labor. $q,$

$q,14$ pounds per pot at a cost of $$6\mathrm{.}00$ per pound

Standard variable manufacturing overhead rate $q,2\mathrm{.}0$ hours at a cost of $$16\mathrm{.}00$ per hour

Budgeted fixed manufacturing overhead $q,....q,$ $$2\mathrm{.}00$ per direct labor hour

Standard fixed MOH rate. $q,$ $$21,000$

$($abor hour $($DLH$)$

Actual Results

$\backslash$table$[[,\backslash$table$[[$Purchased $15,000$ pounds at a cost of $$6\mathrm{.}30$