I am not sure how they got the Standard quantity allowed and as a result can not solve for the DM quantity variance.

Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) E: (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 purchased * Actual price Standard price ) = DM price variance 17.860 x( $ 6.50 $ 6.00 ) = $ 8,930 u U Determine the formula for the quantity variance, then compute the quantity variance for direct material. Standard price *l Standard quantity allowed Actual quantity used ) = DM quantity variance $ 6.00 * 16,800 17,160 ) = ) = $ 2,160 Requirement 2. Who is generally responsible for each variance? U 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 Groovy Bottles' personnel paid for resin exceeded the standard budgeted price for resin. The unfavorable materials quantity variance means that Groovy Bottles' employees used more resin than they should have to produce 1,200 pots. i Actual Results Earthern Ware 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 1,200 flower pots: Purchased 17,860 pounds at a cost of $6.50 per pound; used 17,160 Direct materials pounds to produce 1,200 pots Worked 2.4 hours per flower pot (2,880 total DLH) at a cost of $17.00 per Direct labor hour $4.40 per direct labor hour for total actual variable manufacturing Actual variable manufacturing.overhead overhead of $12,672 Actual fixed manufacturing overhead $16,500 i Standards Standard fixed manufacturing overhead allocated based on actual production......... $19,200 Print Done 14 pounds per pot at a cost of $6.00 Direct materials (resin)... per pound Direct labor. ... 2.0 hours at a cost of $20.00 per hour Standard variable manufacturing overhead rate. $4.00 per direct labor hour Budgeted fixed manufacturing overhead. . $17,200 Standard fixed MOH rate...... ..... $8.00 per direct labor hour (DLH) This question is complete. Move your cursor over or tap on the red arrows to se Print Done Done All parts showing