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.

First determine the formula for the price variance, then compute the price variance for direct materials.

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 $1,400$

flower pots:

Direct materials $................$ used $12,880$ pounds to produce $1,400$ pots

Direct labor. $....$ Worked $3\mathrm{.}5$ hours per flower pot total DLH$)$ at a

cost of $$20\mathrm{.}00$ per hour

Actual variable manufacturing $,$$$5\mathrm{.}40$ per direct labor hour for total actual variable

Actual fixed manufacturing overhead $$24,000$

Standard fixed manufacturing

overhead allocated based on actua!