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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. .... 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 quantity used DM price variance Actual results - X 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. 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 1,500 flower pots: Purchased 14,750 pounds at a cost of $6.40 per pound; Direct materials, used 14,250 pounds to produce 1,500 pots Worked 4.5 hours per flower pot (6,750 total DLH) at a Direct labor... cost of $11.00 per hour Actual variable manufacturing $7.40 per direct labor hour for total actual variable overhead manufacturing overhead of $49,950 Actual fixed manufacturing overhead $74,400 Standard fixed manufacturing overhead allocated based on actual production $ 78,000 I Standards Direct materials (resin) 9 pounds per pot at a cost of $6.00 per . pound 4.0 hours at a cost of $12.00 per hour $7.00 per direct labor hour Print Done Direct labor. Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead Standard fixed MOH rate. 1 . $75,000 $13.00 per direct labor hour (DLH) Clear all Check answer Print Nono

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