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 resuirements 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 dottar Label the variance as favorable (F) or unfavorable Abbreviations used DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials DM price variance Requirements ned ne ne Dired fort 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. Print Done Standards Ente (F) Direct materials (resin) Direct labor.... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate 14 pounds per pot at a cost of $5.00 per . pound .2.0 hours at a cost of $21.00 per hour $2.00 per direct labor hour $24,000 $7.00 per direct labor hour (DLH) Print Done -X Actual Results 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 29,200 pounds at a cost of $5.50 per pound; Direct materials ..used 28,600 pounds to produce 2,000 pots Worked 2.4 hours per flower pot (4,800 total DLH) at a Direct labor.... ..cost of $20.00 per hour Actual variable manufacturing $2.40 per direct labor hour for total actual variable overhead manufacturing overhead of $11,520 Actual fixed manufacturing overhead $23,600 Standard fixed manufacturing overhead allocated based on actual production.. $28,000 Print Done