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 icon 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? 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 formulas nearest cent, then round 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. Actual hours 3740 Standard rate 20 Actual rate 19 Variable overhead rate variance 3740 F "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 "What do each of these variances tell management? Actual hours 3740 Variable overhead efficiency variance 8000 U