Elegant Designs is a manufacturer of large flower pots for urban settings. The company has these standards. (Click the icon to view the standards.) Read the requirements. (Click the icon to view the actual results.) Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive number 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 17120 x ( Actual price Standard price = DM price variance Actual Results Elegant Designs allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, Elegant Designs reported the following actual results for the production of 1,600 flower pots: Direct materials...... Direct labor....... Actual variable manufacturing overhead...... Purchased 17,820 pounds at a cost of $3.50 per pound; . used 17,120 pounds to produce 1,600 pots Worked 5.5 hours per flower pot (8,800 total DLH) at a . cost of $18.00 per hour $3.20 per direct labor hour for total actual variable ... manufacturing overhead of $28,160 Actual fixed manufacturing overhead $93,500 Standard fixed manufacturing overhead allocated based on actual production.. $96,000 Print Done am Standards Direct materials (resin).. Direct labor.... 10 pounds per pot at a cost of $3.00 per . pound .5.0 hours at a cost of $19.00 per hour Standard variable manufacturing overhead rate.....$3.00 per direct labor hour Budgeted fixed manufacturing overhead Standard fixed MOH rate.. ........$94,000 $12.00 per direct labor hour (DLH) Print Done - Requirements 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 -