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Part $1$

CenterWare is a manufacturer of large flowerpots for urban settings. The company has these$$ standards:

View the standards.LOADING...

CenterWare 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 $1$ comma $400$flowerpots:

View the actual results.LOADING...

Read the requirements.LOADING...Direct materials $($resin$)...........................$

$9$ pounds per pot at a cost of $$3\mathrm{.}00$ per pound

Direct labor. $...................................$

$2\mathrm{.}0$ hours at a cost of $$19\mathrm{.}00$ per hour

Standard variable manufacturing overhead rate. $....$

$$4\mathrm{.}00$ per direct labor hour

Budgeted fixed manufacturing overhead. $..........$

$$24,200$

Standard fixed MOH rate. $........................$

$$9\mathrm{.}00$ per direct labor hour $($DLH$)$Direct materials. $.............................$

Purchased $14,000$ pounds at a cost of $$3\mathrm{.}20$ per pound; used $13,300$ pounds to produce $1,400$ pots

Direct labor. $.................................$

Worked $2\mathrm{.}3$ hours per flowerpot $(3,220$ total DLH$)$ at a cost of $$17\mathrm{.}00$ per hour

Actual variable manufacturing overhead. $........$

$$4\mathrm{.}40$ per direct labor hour for total actual variable manufacturing overhead of $$14,168$

Actual fixed manufacturing overhead. $...........$

$$23,600$

Standard fixed manufacturing overhead allocated based on actual production. $...................$

$$25,200$

Compute the direct material price variance and the direct material quantity variance.

$2.$

Who is generally responsible for each$$ variance?

$3.$

Interpret the variances.vatianice and the direct inaterial quantitCenterWare is a manufacturer of large flowerpots for urban settings. The company has these standards:

View the standards.

CenterWare 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 $1,400$

flowerpots:

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 posi

and then round the final variance amount to the nearest whole dollar. Label the variance as favorable $($F$)$ or unfavorable $(U)$ in the

Direct materials.$)$

First determine the formula for the price variance, then compute the price variance for direct materials.

$=$ DM price variance

$=$

Standards

Direct materials $($resin$.).$

dots

$9$ pounds pe

pound

Direct labor.

$2\mathrm{.}0$ hours at

Standard variable manufacturing overhead rate $$4\mathrm{.}00$ per di

Budgeted fixed manufacturing overhead. $.....$ $$24,200$

Standard fixed MOH rate.

$.$ $$9\mathrm{.}00$ per di