eva ondongo 03/23/22 3:13 PM Test: Test #3 Question 3 of 11 This test: 100 point(s) possible This question: 16 point(s) possible Submit test Country Designs 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 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. = DM price variance x Determine the formula for the quantity variance, then compute the quantity variance for direct material. = DM quantity variance x x Requirement 2. Who is generally responsible for each variance? The department is responsible for the materials price variance. The department is responsible for the materials quantity variance. Requirement 3. Interpret the variances. the standard budgeted price for resin . D The materials price variance means that the actual price Country Designs personnel paid for resin The materials quantity variance means that Country Designs employees used | |resin than they should have to produce 1,300 pots. Time Remaining: 02:50:35 Next V esc delete * CO O 88 LO # m O