Grand Display is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) Requirements (Click the loon to view the actual results) 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? 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. Actual hours 3740 Standard rate 20 Actual rate Variable overhead rate variance 3740 Now compute the variable manufacturing overhead efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for variable manufacturing overhead Standard rate 20 Standard hours allowed 3300 Actual hours 3740 Variable overhead efficiency variance 8800 U What do each of these variances tell management? The favorable variable manufacturing overhead (MOH) rate variance tells managers that actual manufacturing overhead costs were lower than expected. The unfavorable variable MOH efficiency variance tes were higher than managers that actual