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.) 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. Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive nu variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct ma First determine the formula for the price variance, then compute the price variance for direct materials. J) = DM price variance i Actual Results Standards 20WNO 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 Direct materials (resin)........ . 13 pounds per pot at a cost of $4.00 per 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) Direct materials ................... Purchased 18,510 pounds at a cost of $4.50 per pound; used 17,810 pounds to produce 1,300 pots Direct labor Worked 4.5 hours per flower pot (5,850 total DLH) at a cost of $16.00 per hour Actual variable manufacturing overhead.... $7.20 per direct labor hour for total actual variable manufacturing overhead of $42,120 Actual fixed manufacturing overhead ....... $49,500 Standard fixed manufacturing overhead allocated based on actual production ....... $52,000 Print Done