E10-33A (similar to) Question Center Ware is a manufacturer of ceramic bottles. B (Click the icon to view the standards.) B (Click the icon to view the actual results.) Requirements 1. Compute the direct labour price variance and the direct labour efficiency variance 2. What is the total flexible budget variance for direct labour? 3. Who is generally responsible for each variance? 4. Interpret the variances. Requirement 1. Compute the direct labour price variance and the direct labour efficiency variance. First, determine the formula for the price variance, then compute the price variance for direct labour. (Enter the result as a positive number. Round your answer to the nearest whole dollar. Label the variance unfavourable (U). favourable ( ) x Price variance A Data Table * Data Table The company has these standards: Last month, Center Ware reported the following actual results for the production of 70,000 bottles: Direct materials (clay) 1 kg per bottle, at a cost of $0.42 per kg Direct labour.... 1/5 hour per bottle, at a cost of $14.40 per hour Static budget variable overhead $70,000 Static budget fixed overhead. $30,000 Static budget direct labour hours......... 10,000 hours Static budget number of bottles.......... 45,000 CenterWare allocates manufacturing overhead to production based on standard direct labour hours. Direct materials ................. 1.1 kg per bottle, at a cost of $0.50 per kg Direct labour.. 1/4 hour per bottle, at a cost of $13.50 per hour Actual variable overhead $104,000 Actual fixed overhead.. 528,000 Print Done Print Done