Office Update To keep up-to-date with security updates, fixes, a... Check for Updates 202SM2022: Name: Problem 1: Standard Costs (60) points: Starry Nights, Inc. manufactures flower pots. The company uses a standard cost system. Flower pots are sold for $8 each. At the start of monthly production, Starry estimated 9,500 flower pats would be produced during March. Starry has established the following material and labor standards to produce one flower pot: Direct Materials: Direct Labor: Standard Quantity 3.0 pounds 0.75 hours Standard Price $3.2 per pound $12 per hour Starry uses a pretermined variable overhead rate based on direct labor hours, which is $8.00 per direct labor hour. During March the following activity was recorded relating to the production of flower pots: 1. The company produced 10,000 units during the month. 2. A total of 27,000 pounds of materials were purchased and used in production at a cost of $94,500. 3. 7,000 hours of labor were incurred during the month at a total wage cost of $80,500. 4. The company actually incurred $62,000 of variable overhead costs. Required: Calculate the following variances during March for Starry Nights, Inc. Label the variances as favorable or unfavorable. Show your calcuations for credit. 1. Materials rate variance: