Standard Price and Volume X I Elegant Designs is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) 3 (Click the icon to view the actual results.) Read the requirements Direct materials (resin) 10 pounds per pot at a cost of $3.00 per pound 5.0 hours at a cost of $19.00 per hour Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amour favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Direct labor... the var Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate.... X DL rate variance $3.00 per direct labor hour $94,000 $12.00 per direct labor hour (DLH) x Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. Actual Results X x = DL efficiency variance x Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive number. Label the variance as favorable (F) or unfavorable (U).) Elegant Designs allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, Elegant Designs reported the following actual results for the production of 1,600 flower pots The total variance for direct laboris Direct materials Requirement 3. Who is generally responsible for each variance? The department is responsible for the labor rate variance. The V department is responsible for the la Requirement 4. Interpret the variances. Direct labor Purchased 17,820 pounds at a cost of $3.50 per pound; Used 17,120 pounds to produce 1,600 pots Worked 5.5 hours per unit (8,800 total DLH) at a cost of $18.00 per hour $3.20 per direct labor hour for total actual variable manufacturing overhead of $28,160 $93,500 The labor rate variance means that Elegant Designs employees earned per hour than budgeted. Actual variable manufacturing overhead The labor efficiency variance means that it actually took direct labor hours than it should have to produce 1,600 pots. Choose from any list or enter any number in the input fields and then continue to the next question. Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production Save for Later $96,000
