Elegance 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) X First determine the formula for the price variance, then compute the price variance for direct materials Actual Results = 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? Elegance 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 19,800 pounds at a cost of $4.30 per Direct materials pound; used 19,400 pounds to produce 2,000 pots Worked 5.5 hours per flower pot (11,000 total DLH) at Direct labor a cost of $21.00 per hour Actual variable manufacturing $3.30 per direct labor hour for total actual variable overhead manufacturing overhead of $36,300 Actual fixed manufacturing overhead $107,500 Standard fixed manufacturing overhead allocated based on actual production ....... $110,000 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 Earthern Ware's personnel paid for resin the standard budgeted price for resin. V quantity ans Earthern Ware's ployees used resin than they uld have to produce 2,000 pots. Standards Print Done 9 pounds per pot at a cost of $4.00 Direct materials (resin) per pound Direct labor .5.0 hours at a cost of $23.00 per hour Standard variable manufacturing overhead rate ....$3.00 per direct labor hour Budgeted fixed manufacturing overhead $108,000 Standard fixed MOH rate $11.00 per direct labor hour (DLH) Print Done