Compute the direct material price variance in the direct material quantities variance. Who is generally responsible for each variance? Interpret the variances

Center Ware 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.) 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. 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. L ) = DM price variance x Actual Results CenterWare 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 1,000 flower pots: "ids to Direct materials Purchased 15,700 pounds at a cost of $3.20 per pound; used 15,300 pounds to produce 1,000 pots Direct labor Worked 2.2 hours per flower pot (2,200 total DLH) at a cost of $11.00 per hour Actual variable manufacturing overhead .... .. $7.60 per direct labor hour for total actual variable manufacturing overhead of $16,720 Actual fixed manufacturing overhead ....... $8,700 Standard fixed manufacturing overhead allocated based on actual production . . . . . . $10,000 Direct materials (resin)... 15 pounds per pot at a cost of $3.00 per pound 2.0 hours at a cost of $12.00 per hour Direct labor Standard variable manufacturing overhead rate ... Budgeted fixed manufacturing overhead. Standard fixed MOH rate .... . $7.00 per direct labor hour $9,000 ..... $5.00 per direct labor hour (DLH)