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 material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount 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. = DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct material. DM quantity = variance Requirement 2. Who is generally responsible for each variance? The department is responsible for the materials price variance. The department is responsible for the materials quantity variance. Requirement 3. Interpret the variances. The materials price variance means that the actual price Elegance's personnel paid for resin the standard budgeted price for resin. The materials quantity variance means that Elegance's employees used resin thanEarthern Ware is a manufacturer of large flower pots for urban set (Click the icon to view the standards.) (C 1. Compute the direct material price variance and the direct material quantity variance Read the requirements. 2. Who is generally responsible for each variance? 3. Interpret the variances. Requirement 1. Compute the direct material price variance and th at and then round the final Print Done X Standards 10 pounds per pot at a cost of $3.00 per Earthern Ware allocated fixed manufacturing overhead to production based on standard direct Direct materials (resin) . . . pound labor hours. Last month, the company reported the following actual results for the production of 2, 100 flower pots: Direct labor . . 4.0 hours at a cost of $22.00 per hour Purchased 22,640 pounds at a cost of $3.20 per pound; Standard variable.manufacturing.overhead rate . . . . . $7.00 per direct labor hour Direct materials . used 21,840 pounds to produce 2, 100 pots Budgeted fixed manufacturing overhead . . $64,200 Worked 4.4 hours per flower pot (9,240 total DLH) at a Direct labor . . . . . . . . . . . . . . . . . . . . . . cost of $21.00 per hour Standard fixed MOH rate " . . . . . . . . . . . . . . $8.00 per direct labor hour (DLH) Actual variable manufacturing $7.50 per direct labor hour for total actual variable overhead . . . . . . . manufacturing overhead of $69,300 Actual fixed manufacturing overhead $63,800 Standard fixed manufacturing Print Done overhead allocated based on actual production . . . . . . . . . . . . . . . . . . . . . . . $67,200 Print Done