x Standard Price and Volume Requirement 2. What is the total variance for direct labor? (Enter the amount as a positive Requirements Direct materials (resin). 15 pounds per pot at a cost of $6.00 per pound 3.0 hours at a cost of $19.00 per hour Direct labor.. 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Standard variable manufacturing overhead rate $7.00 per direct labor hour $57,000 Budgeted fixed manufacturing overhead Standard fixed MOH rate $10.00 per direct labor hour (DLH) Print Done Actual Results Print Done 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 2,000 flower pots: Direct materials Direct labor.. Purchased 30,800 pounds at a cost of $6.20 per pound; Used 30,400 pounds to produce 2,000 pots Worked 3.3 hours per flower pot (6,600 total DLH) at a cost of $18.00 per hour $7.30 per direct labor hour for total actual variable manufacturing overhead of $48,180 $56,700 Actual variable manufacturing overhead.. Actual fixed manufacturing overhead Standard fixed manufacturing overhead allocated based on actual production $60,000 Ceramics Etc. 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. BH: Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. x = DL rate variance x = Now compute the direct labor efficiency variance. First determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. 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).) The total variance for direct labor is Requirement 3. Who is generally responsible for each variance? The variance. department is responsible for the labor rate variance. The department is responsible for the labor efficiency Requirement 4. Interpret the variances. The v labor rate variance means that Watermate's employees earned V per hour than budgeted. The V labor efficiency variance means that it actually took direct labor hours than it should have to produce 2,000 pots
