Grand Display 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.) 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. x DL rate variance |x( Standard Price and Volume . Direct materials (resin) 11 pounds per pot at a cost of $4.00 per pound 4.0 hours at a cost of $17.00 per hour Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate $5.00 per direct labor hour $37,600 $9.00 per direct labor hour (DLH) Print Done Actual Results Grand Display 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 1,100 flower pots: Direct materials Purchased 13,560 pounds at a cost of $4.50 per pound; Used 12,760 pounds to produce 1,100 pots Direct labor Worked 4.5 hours per flower pot (4,950 total DLH) at a cost of $16.00 per hour Actual variable manufacturing overhead $5.70 per direct labor hour for total actual variable manufacturing overhead of $28,215 Actual fixed manufacturing overhead $36,900 Standard fixed manufacturing overhead allocated based on actual production $39,600