E Homework: Chapter 11 Homework Question 5, E11-31A (S. Part 1 of 6 HW Score: 0%, 0 of 10 points O Points: 0 of 2 : 0 2 Save 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. Read the requirements Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. - DL rate vanance Standard Price and Volume 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: Direct materials (resin) ( Direct labor....... Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead. Standard fixed MOH rate. 10 pounds per pot at a cost of $6.00 per pound 2.0 hours at a cost of $14.00 per hour ... $7.00 per direct labor hour $14.000 58.00 per direct labor hour (DLH) Purchased 11.400 pounds al a cost of $6.40 per pound; Direct materials. . ..used 10,800 pounds to produce 1,000 pols Worked 2.5 hours per flower pol (2,500 tolal DLH) at a Direct labor... ..........cost of $13.00 per hour Actual variable manufacturing $7.50 per direct labor hour for total actual variable overhead............... manufacturing overhead of $18.750 Actual fixed manufacturing overhead $13.700 Standard fixed manufacturing overhead allocated based on actual production...... $16.000 Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances Print Done