Pat $1$ of $6$

Actual Results

Chic Design 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 labor rate variance and the direct labor efficiency variance. $($Enter the variances as positive nu amounts to the nearest whole dollar. Label the variance as favorable $($F$)$ or unfavorable $($U$).$ Abbreviations used: DL $=$ Direct labor$)$

Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct $$

$x(,-,)=DL$ rate variance

$(,-,)=$

Standard Price and Volume

$\backslash$table$[[$Direct materials $($resin$).............................,\backslash$table$[[.10$ pounds per pot at a cost of $$4\mathrm{.}00$ per$],[$pound$]]],[$Direct labor., $.............................,\backslash$table$[[5\mathrm{.}0$ hours per pot at a cost of $$18\mathrm{.}00$ per$],[$hour$]]],[$Standard variable manufacturing overhead rate.,dots$$4\mathrm{.}00$ per direct labor hour$],[$Budgeted fixed manufacturing overhead $........,$dots$63,000$