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E11-28A (similar to) Question Help Earthern Ware 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. = DM price variance - X Standards Actual Results 12 pounds per pot at a cost of $3.00 per Direct materials (resin) pound Direct labor .5.0 hours at a cost of $21.00 per hour Standard variable manufacturing overhead rate ... $3.00 per direct labor hour Budgeted fixed manufacturing overhead $46,000 Standard fixed MOH rate $7.00 per direct labor hour (DLH) 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 1,400 flower pots: Purchased 18,020 pounds at a cost of $3.30 per pound; Direct materials used 17,220 pounds to produce 1,400 pots Worked 5.4 hours per flower pot (7,560 total DLH) at a Direct labor cost of $20.00 per hour Actual variable manufacturing $3.50 per direct labor hour for total actual variable overhead ... manufacturing overhead of $26,460 Actual fixed manufacturing overhead ........... $45,500 Standard fixed manufacturing overhead allocated based on actual production $49,000 Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer. ? parts remaining Clear All Check