Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards EEB (Click the icon to view the standards.) (Click the icon to view the actual results.) Requirements 1. Compute the direct material price variance and the direct material quantity variance 2. Who is generally responsible for each variance? 3. Interpret the variances 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 V department is responsible for the materials quantity variance Choose from any list or enter any number in the input fields and then continue to the next question Earthem Ware is a manufacturer of large flower pots for urban settings. The company has these standards: EEB (Click the icon to view the standards.) Requirements 1. Compute the direct material price variance and the direct material quantity variance 2. Who is generally responsible for each variance? 3. Interpret the variances. EE (Click the icon to view the actual results.) DM price variance X ( Determine the formula for the quantity variance, then compute the quantity variance for direct material x ( x ( DM quantity variance Requirement 2. Who is generally responsible for each variance? The Requirement 3. Interpret the variances. V department is responsible for the materials price variance. The V department is responsible for the materials quantity variance The materials materials price variance means that the actual price Grand Ceramics' personnel paid for resin Vthe standard budgeted price for resin. The materials quantity variance means that Grand Ceramics, employees used | | resin than they should have to produce 1,200 pots. Choose from any list or enter any number in the input fields and then continue to the next question Standards Direct materials (resin) . . . . . . . . . . . . . . . . . . . . . . . 12 pounds per pot at a cost of $6.00 per pound Direct labor . . . . . . . . . . . . . . . . .. . . . . . . ...4.0 hours at a cost of $13.00 per hour Standard variable manufacturing overhead rate . . _ . . . . . . . . . . . . . . . . . . . $5.00 per direct labor hour Budgeted fixed manufacturing overhead Standard fixed MOH rate . . . . . . . . . . . . . . . . . . . . .$11.00 per direct labor hour (DLH) Print Done 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 1,200 flower pots: Direct materials $6.10 per pound; used 14,640 pounds to produce 1,200 pots Direct labor . . . . . . . . .. Worked 4.4 hours per flower pot (5,280 .. . . . . . . total DLH) at a cost of $12.00 per hour $5.20 per direct labor hour for total actual variable manufacturing overhead of $27,456 Actual variable manufacturing overhead.. Actual fixed manufacturing overhead $48,100 Standard fixed manufacturing overhead allocated based on actual production . . . . . $52,800 Print Done