FlowerMate is a manufacturer of large flower pots for urban settings. The company has these standards:

Direct materials (resin) - 15 pounds per pot at a cost of $6.00

Direct labor - 2.0 hours at a cost of $16.00 per hour

Standard variable manufacturing overhead rate - $7.00 per direct labor hour

Budgeted fixed manufacturing overhead - $20,600

Standard fixed MOH rate - $6.00 per direct labor hour (DLH)

FlowerMateFlowerMate

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 28,480 pounds at a cost of $6.50 per pound; used 28,080 pounds to produce 1,800 pots.

Direct labor -Worked 2.5 hours per flower pot (4,500 otal DLH) at a cost of $14.00 per hour

Actual variable manufacturing overhead- $7.40 per direct labor hour for total actual variable manufacturing overhead of $33,300

Actual fixed manufacturing overhead - $19,900

Standard fixed manufacturing overhead allocated based on actual production- $21,600

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.