GrandScapes is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) Read the requirements. (Click the icon to view the actual results.) Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DM = Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. Standards - X Actual hours } = DM price variance Actual Results x ( GrandScapes 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 2,000 flower pots: Direct materials Direct labor ... Actual variable manufacturing overhead.. Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual Purchased 29,200 pounds at a cost of $6.20 per pound; . used 28,600 pounds to produce 2,000 pots Worked 3.5 hours per flower pot (7,000 total DLH) at a .cost of $19.00 per hour $7.70 per direct labor hour for total actual variable manufacturing overhead of $53,900 $28,600 production.... $30,000 Direct materials (resin) Direct labor......... Standard variable manufacturing overhead rate .. Budgeted fixed manufacturing overhead Standard fixed MOH rate Requirements 14 pounds per pot at a cost of $6.00 per . pound 3.0 hours at a cost of $21.00 per hour .$7.00 per direct labor hour $29,000 . $5.00 per direct labor hour (DLH) 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.