DaisyMate is a manufacturer of large flower pots for urban settings. The company has these standards: Direct materials (resin) 5 pounds per pot at a cost of $3.00 per pound Direct labor 2.0 hours at a cost of $18.00 per hour Standard variable manufacturing overhead rate $10.00 per direct labor hour Budgeted fixed manufacturing overhead $8,800 Standard fixed MOH rate $2.50 per direct labor hour (DLH) Additional Information: DaisyMate allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, DaisyMate reported the following actual results for the production of 2,000 flower pots: Direct materials Purchased 10,800 pounds at a cost of $4.00 per pound; Used 10,300 pounds to produce 2,000 pots Direct labor Worked 2.1 hours per unit (4,200 total DLH) at a cost of $18.60 per hour Actual variable manufacturing overhead $10.50 per direct labor hour for total actual variable manufacturing overhead of $44,100 Actual fixed manufacturing overhead $10,200 Standard fixed manufacturing overhead allocated based on actual production $10,000 Requirements

1a. Compute the direct materials price variance and the direct materials quantity variance. (4 Points)

1b. What is the total variance for direct materials? (2points)

1c. Who is generally responsible for each variance? (2points) 1d. Interpret the variances. (2points)

2a. Compute the direct labor rate variance and the direct labor efficiency variance. (4points) 2b. What is the total variance for direct labor? (2points)

2c. Who is generally responsible for each variance? (2points)

2d. Interpret the variances. (2points)

3a. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (5points)

3b. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? (5points)

4. Prepare a standard cost income statement for the companys management. Assume that sales were $480,000 and actual marketing and administrative expenses were $76,500. (10points)