Refer to the Country Designs data set. Country Designs is a manufacturer of large flower pots for

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Refer to the Country Designs data set.
Country Designs is a manufacturer of large flower pots for urban settings. The company has these standards:
Direct materials (resin) 13 pounds per pot at a cost of $4.00 per pound 4.0 hours at a cost of $17.00 per hour Direct la

Country Designs 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 1,300 flower pots:

Purchased 18,510 pounds at a cost of $4.50 per pound; used 17,810 pounds to produce 1,300 pots Worked 4.5 hours per flow

Requirements
1. Compute the variable manufacturing overhead variances. What do each of these variances tell management?
2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management?

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Managerial Accounting

ISBN: 978-0134128528

5th edition

Authors: Karen W. Braun, Wendy M. Tietz

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