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. 2 DM price variance - Actual results Standards Direct materials (resin) 11 pounds per pot at a cost of $6.00 per pound Direct labor..... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead .5.0 hours at a cost of $19.00 per hour $5.00 per direct labor hour .$68,000 $7.00 per direct labor hour (DLH) 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 2,000 flower pots: Purchased 23,200 pounds at a cost of $6.40 per pound; Direct materials... used 22,400 pounds to produce 2,000 pots Worked 5.4 hours per flower pot (10,800 total DLH) at a Direct labor... cost of $18.00 per hour Actual variable manufacturing $5.40 per direct labor hour for total actual variable overhead. .. manufacturing overhead of $58,320 Actual fixed manufacturing overhead $67,400 Standard fixed manufacturing overhead allocated based on actual production... $70,000 Standard fixed MOH rate... Print Done