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. x = DL rate variance x Actual Results i Standard Price and Volume 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 1,000 flower pots: Direct materials (resin) 11 pounds per pot at a cost of $6.00 per pound 3.0 hours at a cost of $17.00 per hour Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate $5.00 per direct labor hour $16,000 $6.00 per direct labor hour (DLH) Direct materials Purchased 12,200 pounds at a cost of $6.50 per pound; Used 11,600 pounds to produce 1,000 pots Direct labor Worked 3.3 hours per flower pot (3,300 total DLH) at a cost of $16.00 per hour Actual variable manufacturing overhead .... $5.70 per direct labor hour for total actual variable manufacturing overhead of $18,810 Actual fixed manufacturing overhead $15,600 Standard fixed manufacturing overhead allocated based on actual production $18,000 Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer. Check Answer Clear All 5 parts remaining TE OOO F5 F6 F F3 esc Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards: B Click the icon to view the standards.) E (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 num 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 la X DL rate variance Actual Results Actual hours Actual quantity purchased Actual rate Standard hours allowed Standard rate Earthern Ware allocated fixed manufacturing overhead to production based on standard direct hours. Last month, the company reported the following actual results for the production of 1,000 flower pots: Direct materials Purchased 12,200 pounds at a cost of $6.50 per pound; Used 11,600 pounds to produce 1,000 pots Direct labor Worked 3.3 hours per flower pot (3,300 total DLH) at a cost of $16.00 per hour Actual variable manufacturing overhead $5.70 per direct labor hour for total actual variable manufacturing overhead of $18,810 Actual fixed manufacturing overhead $15,600 Standard fixed manufacturing overhead allocated based on actual production ...... $18,000 Print Done Choose from any list or enter any number in the input fields and then click Check Answer. C parts remaining MacB OOO OOO F4 F5 esc F3 F1 F2 > @ # % { 2 4 0 3 5 0 E T W .. 6:": A S >> DS J. Z X C S N
