W E11-28A (similar to) * Requirements Ceramics Etc. is a manufacturer of large flower pots for urban settings. The company has these standard (Click the icon to view the standards.) (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. Requirement 1. Compute the direct material price variance and the direct material quantity variance. (En nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as Print Done First determine the formula for the price variance, then compute the price variance for direct materials. Actual quantity purchased * Standard price Actual price ) = DM price variance 24,260 ( $ 5.00 5.20 ) = $ 4,852 U U Determine the formula for the quantity variance, then compute the quantity variance for direct material. Standard price x Standard quantity allowed) = DM quantity variance Actual quantity used 23560 5 X 1 Actual Results X Standards - 12 pounds per pot at a cost of $5.00 Direct materials (resin).. per pound Direct labar..... 4.0 hours at a cost of $18.00 per hour Standard variable manufacturing overhead rate... $5.00 per direct labor hour Budgeted fixed manufacturing overhead. $44,600 Standard fixed MOH rate..... $6.00 per direct labor hour (DLH) Ceramics Etc. 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 1,900 flower pots: Purchased 24.260 pounds at a cost of $5.20 per Direct materials. pound; used 23,560 pounds to produce 1,900 pots Worked 4.5 hours per flower pot (8,550 total DLH) at Direct labor... . a cost of $17.00 per hour Actual variable manufacturing $5.40 per direct labor hour for total actual variable overhead........... manufacturing overhead of $46,170 Actual fixed manufacturing overhead $44,300 Standard fixed manufacturing overhead allocated based on actual production...................... $45,600 Print Done Temeng