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Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards: B (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 Standards - X 9 pounds per pot at a cost of $5.00 per Direct materials (resin). . pound Direct labor 3.0 hours at a cost of $11.00 per hour Standard variable manufacturing overhead rate..... $2.00 per direct labor hour Budgeted fixed manufacturing overhead $22,400 Standard fixed MOH rate... $8.00 per direct labor hour (DLH) Print Done Actual Results - X 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 1,100 flower pots: Purchased 11,370 pounds at a cost of $5.50 per pound; Direct materials. ... used 10,670 pounds to produce 1,100 pots Worked 3.4 hours per flower pot (3,740 total DLH) at a Direct labor cost of $10.00 per hour Actual variable manufacturing $2.70 per direct labor hour for total actual variable overhead .. manufacturing overhead of $10,098 Actual fixed manufacturing overhead $21,900 Standard fixed manufacturing overhead allocated based on actual production $26,400 Print Done Requirements - X 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances. Print Done