E11-28A (similar to) Ruestion Help Requirements Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards: 5 Click the icon to view the standards.) E (Click the icon to view the actual results.) Read the 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. final variance amount Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as p to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. Print Done DM price variance Standards 9 pounds per pot at a cost of $6.00 per pound Earthern Ware 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 1,200 flower pots: Purchased 12,240 pounds at a cost of $6.20 per pound; Direct materials used 11,640 pounds to produce 1,200 pots Worked 3.2 hours per flower pot (3,840 total DLH) at a Direct labor.. cost of $18.00 per hour Actual variable manufacturing $8.70 per direct labor hour for total actual variable overhead manufacturing overhead of $33,408 Actual fixed manufacturing overhead $35,400 Standard fixed manufacturing overhead allocated based on actual production...... $39,600 Direct materials (resin). Direct labor.... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate... 3.0 hours at a cost of $19.00 per hour $8.00 per direct labor hour $35,600 $11.00 per direct labor hour (DLH) Print Done Print Done Choo E11-28A (similar to) Ruestion Help Requirements Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards: 5 Click the icon to view the standards.) E (Click the icon to view the actual results.) Read the 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. final variance amount Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as p to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. Print Done DM price variance Standards 9 pounds per pot at a cost of $6.00 per pound Earthern Ware 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 1,200 flower pots: Purchased 12,240 pounds at a cost of $6.20 per pound; Direct materials used 11,640 pounds to produce 1,200 pots Worked 3.2 hours per flower pot (3,840 total DLH) at a Direct labor.. cost of $18.00 per hour Actual variable manufacturing $8.70 per direct labor hour for total actual variable overhead manufacturing overhead of $33,408 Actual fixed manufacturing overhead $35,400 Standard fixed manufacturing overhead allocated based on actual production...... $39,600 Direct materials (resin). Direct labor.... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate... 3.0 hours at a cost of $19.00 per hour $8.00 per direct labor hour $35,600 $11.00 per direct labor hour (DLH) Print Done Print Done Choo