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.) 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 Actual rate DL rate variance x Actual Results 0 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 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 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) Print Done Print Done ? Choose from any list or enter any number in the input fields and then click Check Answer Clear All Check Answer 5 parts remaining MacBook Pro 0 ODO OOO F4 512 F10 511 F9 F8 F7 esc F6 F5 F3 F? E11-29A (similar to) 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.) (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 variar 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 x( Actual rate x Actual Results Actual hours Actual quantity purchased Actual rate Standard hours allowed Standard rate arthern Ware allocated fixed manufacturing overhead to production based on hours. Last month, the company reported the following actual results for the pro flower pots: Direct materials Purchased 12,200 pounds at $6.50 per pound; Used 11,600 produce 1,000 pots Worked 3.3 hours per flower total DLH) at a cost of $16.00 $5.70 per direct labor hour for actual variable manufacturing Direct labor Actual variable manufacturing overhead of $18,810 $15,600 Actual fixed manufacturing overhead 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. 5 parts remaining 000 000 F4 F3 esc F2 F1 # 3 r 4
