Earthern 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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (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).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead rate variance x X i Standard Price and Volume 14 pounds per pot at a cost of $6.00 per Direct materials (resin). .. pound Direct labor... 2.0 hours at a cost of $23.00 per hour Standard variable manufacturing overhead rate ..... $4.00 per direct labor hour Budgeted fixed manufacturing overhead. $18,800 Standard fixed MOH rate.. .$6.00 per direct labor hour (DLH) 0 Actual Results 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 1,900 flower pots: Purchased 27,870 pounds at a cost of $6.40 per pound; Direct materials. ..used 27,170 pounds to produce 1,900 pots Worked 2.4 hours per flower pot (4,560 total DLH) at a Direct labor.... ..cost of $20.00 per hour Actual variable manufacturing $4.50 per direct labor hour for total actual variable overhead .. ... manufacturing overhead of $20,520 Actual fixed manufacturing overhead $18,400 Standard fixed manufacturing overhead allocated based on actual production. $22,800 Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management