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 labor rate variance and the direct labor efficiency variance. (Enter the variances 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. DL rate variance X Standard price and volume Requirements 13 pounds per pot at a cost of $3.00 per pound Direct materials (resin) Direct labor........ Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead ... Standard fixed MOH rate. 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances .2.0 hours at a cost of $12.00 per hour $8.00 per direct labor hour S34,000 $10.00 per direct labor hour (DLH) Print 1 Done Print Done 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 labor rate variance and the direct labor efficiency variance. (Enter the variances 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. DL rate variance X Standard price and volume Requirements 13 pounds per pot at a cost of $3.00 per pound Direct materials (resin) Direct labor........ Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead ... Standard fixed MOH rate. 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances .2.0 hours at a cost of $12.00 per hour $8.00 per direct labor hour S34,000 $10.00 per direct labor hour (DLH) Print 1 Done Print Done