Question list

$\frac{x}{\frac{?}{?}}$ Question $1$

Question $2$

Question $3$

Standards

Requirements

Compute the direct material price variance and the direct material quantity

variance.

Who is generally responsible for each variance?

Interpret the variances.

Grand Display 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.

First determine the formula for the price variance, then compute the price variance for direct materials.

Actual Results

Grand Display 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

$2,000$ flower pots:.