Score: 0 of 1 pt 9 of 10 (8 complete) HW Score: 78.75%, 7.88 of 10 pts E11-28A (similar to) Help O i Requirements * CenterWare is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) E(Click the icon to view the actual results.) Read the requirements. 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 riance amount Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positiven 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 quantity purchased Actual price Standard price 1) = DM price variance Print Done x = i Actual Results i Standards Center 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 16,130 pounds at a cost of $5.40 per pound; Direct materials used 15,730 pounds to produce 1,100 pots Worked 4. 3 hours per flower pot (4,730 tolal DLH) at a Direct labor ****............ cost of $14.00 per hour Actual variable manufacturing $6.50 per direct labor hour for total actual variable overhead ................. manufacturing overhead of $30,745 Actual fixed manufacturing overhead $32,800 Standard fixed manufacturing overhead allocated based on actual production S35.200 14 pounds per pot at a cost of $5.00 per Direct materials (resin) pound Direct labor .4.0 hours at a cost of $15.00 per hour Standard variable manufacturing overhead rate ....S6.00 per direct labor hour Budgeted fixed manufacturing overhead $33,200 Standard fixed MOH rate .58.00 per direct labor hour (DLH) Print Done 2 Print Done Clear All Check