Elegance is a manufacturer of large flower pots for urban settings. The company has these standards: E (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 as 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 A ) - DL rate variance i Standard Price and Volume Direct materials (resin)....... ... 10 pounds per pot at a cost of $6.00 per pound Direct labor ... 2.0 hours at a cost of $17.00 per hour Standard variable manufacturing overhead rate .......... $2.00 per direct labor hour Budgeted fixed manufacturing overhead ........ $20,600 Standard fixed MOH rate ..................... $6.00 per direct ... $6.00 per direct labor hour (DLH) i 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 1,800 flower pots: Direct materials . Purchased 19,160 pounds at a cost of $6.10 per pound; Used 18,360 pounds to produce 1,800 pots Direct labor Worked 2.5 hours per flower pot (4,500 total DLH) at a cost of $15.00 per hour Actual variable manufacturing overhead . . . . . $2.40 per direct labor hour for total actual variable manufacturing overhead of $10,800 Actual fixed manufacturing overhead ....... $19,900 Standard fixed manufacturing overhead allocated based on actual production ......: $21,600 1 Requirements 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