Elegant Designs 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.) Requirements 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? Points: 0 of 1 Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (Enter the variances as positive numbers. Enter the currency amounts in the the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead Variable overhead rate 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 Standard fixed manufacturing overhead allocated based on actual production. $93,500 $96,000 Print Done - ria Standard Price and Volume 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 variable manufacturing overhead variances. What do each of these variances tell management? 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management?