Earthem Ware 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 variance 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 Earther Ware 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 variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the for X Standard price and volume 13 pounds per pot at a cost of $6.00 per Direct materials (resin) pound Direct labor .4.0 hours at a cost of $21.00 per hour Standard variable manufacturing overhead rate ..... 56.00 per direct labor hour Budgeted fixed manufacturing overhead S59,000 Standard fixed MOH rate. S10.00 per direct labor hour (DLH) Print Done Earther Ware 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 2 X the nearest cent, then round the final variance amounts to Requirement 1. Compute the direct labor rate variance and ti the nearest whole dollar. Label the variance as favorable (F) Begin with the direct labor rate variance. First determine the fa Actual results Earthem 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 1,500 flower pots: Purchased 20,800 pounds at a cost of $6.10 per pound; Direct materials. used 20,400 pounds to produce 1,500 pots Worked 4.5 hours per flower pot (6,750 total DLH) at a Direct labor.... cost of $20.00 per hour Actual variable manufacturing $6.50 per direct labor hour for total actual variable overhead ......................... manufacturing overhead of S43,875 Actual fixed manufacturing overhead $58,500 Standard fixed manufacturing overhead allocated based on actual production. $60,000 Print Done Earther Ware 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 variance 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. 2 X Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? Who is generally responsible for each variance? 4. Interpret the variances Print Done
