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.) Standards 11 pounds per pot at a cost of $6.00 per pound Direct materials (resin) Direct labor. 2.0 hours at a cost of $24.00 per hour $3.00 per direct labor hour Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate. $48,000 . $13.00 per direct labor hour (DLH) 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 23,000 pounds at a cost of $6.40 per pound; Direct materials.. used 22,400 pounds to produce 2,000 pots Worked 2.4 hours per flower pot (4,800 total DLH) at a Direct labor. cost of $21.00 per hour Actual variable manufacturing $3.50 per direct labor hour for total actual variable overhead manufacturing overhead of $16,800 Actual fixed manufacturing overhead $47,300 Standard fixed manufacturing overhead allocated based on actual production.. $52,000 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. Actual quantity purchased Actual price Standard price DM price variance x x( $ $ $ U Determine the formula for the quantity variance, then compute the quantity variance for direct material. Standard price x Actual quantity used Standard quantity allowed = DM quantity variance $ x U Requirement 2. Who is generally responsible for each variance? The purchasing department is responsible for the materials price variance. The production department is responsible for the materials quantity variance. Requirement 3. Interpret the variances. The unfavorable materials price variance means that the actual price Chic Ceramics' personnel paid for resin exceeded the standard budgeted price for resin. The unfavorable materials quantity variance means that Chic Ceramics' employees used more resin than they should have to produce 2,000 pots