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

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Part $1$

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.

$\backslash$times $($

$-$

$)$

$=$

DM price variance

$\backslash$times $($

$-$

$)$

$=$

Part $2$

Determine the formula for the quantity$$ variance, then compute the quantity variance for direct material.

$\backslash$times $($

$-$

$)$

$=$

DM quantity variance

$\backslash$times $($

$-$

$)$

$=$

Part $3$

Requirement $2.$ Who is generally responsible for each$$ variance?

The

$$

marketing

production

purchasing

sales

department is responsible for the materials price variance. The

$$

marketing

purchasing

production

sales

department is responsible for the materials quantity variance.

Part $4$

Requirement $3.$ Interpret the variances.

The

$$

favorable

unfavorable

materials price variance means that the actual price GardenScapes' personnel paid for resin

$$

did not exceed

exceeded

the standard budgeted price for resin.

Part $5$

The

$$

favorable

unfavorable

materials quantity variance means that GardenScapes' employees used

$$

less

more

resin than they should have to produce $1$ comma $700$ pots.