Groovy Bottles is a manufacturer of ceramic bottles. (Click the icon to view the standards.) E (Click the icon to view the actual results.) ) Requirements 1. Compute the direct materials price variance and the direct materials efficiency variance. 2. What is the total flexible budget variance for direct materials? 3. Who is generally responsible for each variance? 4. Interpret the variances Requirement 1. Compute the direct materials price variance and the direct materials efficiency variance First, determine the formula for the price variance, then compute the price variance for direct materials. (Enter the result as a positive number. Round your answer to the nearest whole dollar. Label the variance as favourable (F) or unfavourable (U).) ) x = Price variance X Data table - X Data table The company has these standards Last month, Groovy Bottles reported the following actual results for the production of 69,000 bottles: Direct materials 1.2 kg per bottle, at a cost of $0.50 per kg Direct labour..... 1/4 hour per bottle, at a cost of $13.00 per hour Actual variable overhead $ 101.000 Actual fixed overhead. $24.500 Direct materials (clay) 1.1 kg per bottle, at a cost of $0.42 per kg Direct labour. ....... 1/5 hour per bottle, at a cost of $14.80 per hour , Static budget variable overhead $68,850 Static budget fixed overhead $29,070 Static budget direct labour hours. 10,200 hours Static budget number of bottles 50,000 Groovy Bottles allocates manufacturing overhead to production based on standard direct labour hours. Print Done