Earthern ware is a manufacturer of large flower pots for urban settings. The company has these standards: Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . . 12 pounds per pot at a cost of $4.00 per pound Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.0 hours at a cost of $12.00 per hour Standard variable manufacturing overhead rate. . . . . $7.00 per direct labor hour Budgeted fixed manufacturing overhead. . . . . . . . . . . $39,800 Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . . . . . . . $12.00 per direct labor hour (DLH) 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 flower pots: Direct materials. . . . . . . . . . . . . . . . . . . . Purchased 22,120 pounds at a cost of $4.50 per pound; used 21,420 pounds to produce 1,700 pots Direct labor. . . . . . . . . . . . . . . . . . . . . . . Worked 2.5 hours per flower pot (4,250 total DLH) at a cost of $10.00 per hour Actual variable manufacturing overhead. . . . . . . . . . . . . . . . . . . . . . . . . $7.30 per direct labor hour for total actual variable manufacturing overhead of $31,025 Actual fixed manufacturing overhead $39,400 Standard fixed manufacturing overhead allocated based on actual production. . . . . . . . . . . . . . . . . . . . . . . . $40,800 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. Actual hours ( - ) = DL rate variance ( - ) =