Score: 0 of 1 pt 9 of 10 (5 complete) HW Score: 48.13%, 4.81 of 10 pts E11-28A (similar to) Question Help 0 Grand Display 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. Actual Results DM price variance A Standards Direct materials (resin) 15 pounds per pot at a cost of $5.00 per . pound Grand Display 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 19,640 pounds at a cost of $5.40 per pound; Direct materials used 18,840 pounds to produce 1,200 pots Worked 5.5 hours per flower pot (6,600 total DLH) at a Direct labor cost of $17.00 per hour Actual variable manufacturing $5.30 per direct labor hour for total actual variable overhead ................... manufacturing overhead of $34,980 Actual fixed manufacturing overhead $67,500 Standard fixed manufacturing overhead allocated based on actual production $72,000 Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead ..... Standard fixed MOH rate 5.0 hours at a cost of $18.00 per hour $5.00 per direct labor hour $ $68,000 . $12.00 per direct labor hour (DLH) i Requirements Print Done 1. Compute the direct material price variance and the direct material quantity variance 2. Who is gonerally responsible for each variance? 3. Interpret the variances. 2