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

Direct materials (resin)................................. 8 pounds per pot at a cost of $6.00 per pound

Direct Labor................................................ 2.0 hours at a cost of $15.00 per hour

Standard variable manufacturing overhead rate.................. $4.00 per direct labor hour

Budgeted fixed manufacturing overhead..................... $16,600

Standard fixed MOH rate................................ $8.00 per direct labor hour (DLH)

Grandscapes allocate 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 9,950 pounds at a cost of $6.30 per pound; used 9,350 pounds to produce 1,100 pots

Direct labor.................................................... Worked 2.2 hours per flower pot (2,420 total DLH) at a cost of $14.00 per hour

Actual variable manufacturing overhead........... $4.30 per direct labor hour for total actual variable manufacturing overhead $10,406

Actual fixed manufacturing overhead................ $16,400

Standard fixed manufacturing overhead............ $17,600

allocated based on actual production

Refer to the GrandScapes data set.

1. Compute the direct material price variance and the direct material quantity variance.

2. What is the total variance for direct material?

3. Who is generally responsible for each variance?

4. Compute the direct labor rate variance and the direct labor efficiency variance.

5. What is the total variance for direct labor?

6. Who is generally responsible for each variance?