GrandScapes 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 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. Actual quantity used Standard price Actual price = DM price variance 14700 * ( 4.5 = -7350 F Determine the formula for the quantity variance, then compute the quantity variance for direct material. Standard price x ( Standard quantity allowed Actual quantity used ) = DM quantity variance 4 14700 = U Requirement 2. Who is generally responsible for each variance? The purchasing department is responsible for the materials price variance. The production |department is responsible for the materials quantity variance. Requirement 3. Interpret the variances. The unfavorable materials price variance means that the actual price Watermate's personnel paid for resin exceeded the standard budgeted price for resin. The unfavorable materials quantity variance means that Watermate's employees used less resin than they should have to produce 1,400 pots. Choose from any list or enter any number in the input fields and then continue to the next question. ?i Standards - X GrandScapes is a manufacturer of larg (Click the icon to view the standard 10 pounds per pot at a cost of $4.00 per Read the requirements. Direct materials (resin) . . pound Direct labor . . . . . 2.0 hours at a cost of $19.00 per hour Requirement 1. Compute the direct m er currency amounts in the formula to the nearest cent and then round the final variance amount to the Standard variable manufacturing overhead rate . . . . $7.00 per direct labor hour materials) First determine the formula for the price Budgeted fixed manufacturing overhead . . . . . . . .. . $21,400 Standard fixed MOH rate . . . . . . . $8.00 per direct labor hour (DLH) Actual quantity used 14700 i Actual Results X Determine the formula for the quantity Standard price 4 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 Requirement 2. Who is generally resp 1,400 flower pots: Purchased 15,200 pounds at a cost of $4.50 per pound; The purchasing department is respo Direct materials used 14,700 pounds to produce 1,400 pots variance. Worked 2.5 hours per flower pot (3,500 total DLH) at a Requirement 3. Interpret the variance Direct labor cost of $17.00 per hour The unfavorable | materials price vari. Actual variable manufacturing $7.40 per direct labor hour for total actual variable overhead . manufacturing overhead of $25,900 ed price for resin. The unfavorable materials quantity v Actual fixed manufacturing overhead $21,000 Standard fixed manufacturing overhead allocated based on actual production . . . . . . $22,400 Choose from any list or enter any nu ? Print Done