Refer to the CityScapes data set Requirements 1 Compute the
Refer to the CityScapes data set.

Requirements
1. Compute the direct material price variance and the direct material quantity variance.
2. What is the total variance for direct material?
3. Who is generally responsible for each variance?
4. Interpret the variances.
CityScapes data set.
CityScapes is a manufacturer of large flower pots for urban settings. The company has these standards:
Direct materials (resin)....................................... 15 pounds per pot at a cost of $ 5.00 per pound
Direct labor.............................................................. 2.0 hours at a cost of $ 13.00 per hour
Standard variable manufacturing overhead rate.................................... $ 6.00 per direct labor hour
Budgeted fixed manufacturing overhead................ $ 23,600
Standard fixed MOH rate......................................... $ 7.00 per direct labor hour (DLH)

CityScapes allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, CityScapes reported the following actual results for the production of 1,900 flower pots:

Direct materials............................................. Purchased 30,230 pounds at a cost of $ 5.20 per pound; used 29,830 pounds to ­produce 1,900 pots
Direct labor................................................... Worked 2.4 hours per unit (4,560 total DLH) at a
cost of $ 12.00 per hour
Actual variable manufacturing overhead...... $ 6.20 per direct labor hour for total actual variable
manufacturing overhead of $ 28,272
Actual fixed manufacturing overhead........... $ 23,400
Standard fixed manufacturing overhead allocated based on actual production.......... $ 26,600

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