= Homework: Chapter 11 Homework Question 11, E11-32A (si... Part 6 of 6 HW Score: 96.15%, 19.23 of 20 points Points: 2.23 of 3 Save Actual results Elegance 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 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? Now compute the vanable manufacturing overhead efficiency vanance. First determine the formula for the efficiency vanance, then com Variable overhead Actual hours ) = Standard rate 4.00 Standard hours allowed 2.200 efficiency variance 2,200 U U Elegance 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: Purchased 13,250 pounds at a cost of $4.30 per pound; Direct materials.. used 12,650 pounds to produce 1.100 pots Worked 2.5 hours per flower pot (2,750 total DLH) at a Direct labor.... cost of $13.00 per hour Actual variable manufacturing $4.20 per direct labor hour for total actual variable overhead......................., manufacturing overhead of S11,550 . Actual fixed manufacturing overhead $21,700 Standard fixed manufacturing overhead allocated based on actual production .......... $24,200 $ 2,750 ) = $ What do each of these variances tell management? The unfavorable variable manufacturing overhead (MOH) rate variance tells managers that actual manufacturing overhead costs we direct labor hours were higher than standard hours allowed Standard price and volume Requirement 2. Compute the fixed manufacturing overhead variances. What do each of these variances tell management? (Abbreviatic favorable (F) or unfavorable (U).) Begin by computing the fixed manufacturing overhead budget variance. First determine the formula for the budget variance, then compu Fixed MOH Actual fixed overhead Budgeted fixed overhead = budget variance $ 21,700 = S 500 F F 22,200 Now compute the fixed manufacturing overhead volume variance. First determine the formula for the volume variance, then compute the 11 pounds per pot at a cost of $4.00 per Direct materials (resin) pound Direct labor 2.0 hours at a cost of $16.00 per hour Standard variable manufacturing overhead rate ..... $4.00 per direct labor hour Budgeted fixed manufacturing overhead .... .S22,200 Standard fixed MOH rate. .S11.00 per direct labor hour (DLH) Budgeted fixed overhead Std. fixed overhead cost allocated to production = = Help me solve this Video Get more help. Print Done