Refer to the GrandScapes data set Requirements 1 Compute the
Refer to the GrandScapes 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.
GrandScapes data set.
GrandScapes is a manufacturer of large flower pots for urban settings. The company has these standards:
Direct materials (resin)............................................. 8 pounds per pot at a cost of $ 6.00 per
pound Direct labor............................................................. 2.0 hours at a cost of $ 15.00 per hour tandard variable manufacturing overhead rate..................................................... $ 4.00 per direct
labor hour Budgeted fixed manufacturing overhead............... $ 16,600
Standard fixed MOH rate........................................ $ 8.00 per direct labor hour (DLH)

GrandScapes 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 1,100 flower pots:

Direct materials....................................................... Purchased 9,950 pounds at a cost of $ 6.30 per pound; used 9,350 pounds to produce 1,100 pots

Direct labor............................................................. Worked 2.2 hours per flower pot (2,420 total
DLH) at a cost of $ 14.00 per hour

Actual variable manufacturing overhead................ $ 4.30 per direct labor hour for total actual variable manufacturing overhead of $ 10,406
Actual fixed manufacturing overhead..................... $ 16,400
Standard fixed manufacturing overhead
allocated based on actual production.................... $ 17,600

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help