Country Designs 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 labor rate variance and the direct labor efficiency variance (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 vanance as favorable (F) or unfavorable (U). Abbreviations used DL - Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor DL rate variance Now compute the direct labor efficiency variance First determine the formula for the efficiency vanance, then compute the efficiency vanance for direct labor > = DL efficiency variance > Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive number Label the variance as favorable (F) of unfavorable (0) The total variance for direct laboris Requirement 3. Who is generally responsible for each variance? The department is responsible for the labor rate variance The department is responsible for the labor efficiency variance Requirement 4. Interpret the vanances The laborate vanance means that country Designs employees earned per hour than budgeted Standard Price and Volume 13 pounds per pot at a cost of $4.00 per Direct materials (resin) . pound Direct labor... 4.0 hours at a cost of $17.00 per hour Standard variable manufacturing overhead rate..... $7.00 per direct labor hour Budgeted fixed manufacturing overhead.. $50,000 Standard fixed MOH rate. $10.00 per direct labor hour (DLH) Print Done - i Actual Results Country Designs 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 1,300 flower pots Purchased 18,510 pounds at a cost of $4.50 per pound; Direct materials used 17,810 pounds to produce 1,300 pots Worked 4.5 hours per flower pot (5 850 total DLH) at a Direct labor..... cost of $16.00 per hour Actual variable manufacturing $7 20 per direct labor hour for total actual variable overhead. ... manufacturing overhead of $42.120 Actual fixed manufacturing overhead $49,500 Standard fixed manufacturing overhead allocated based on actual production. $52,000 Print Done X i Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances Print Done