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$)$ in the input field after the amount you enter. 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.

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DL rate variance

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$)=$ Standard Price and Volume

Direct materials $($resin$)...........................14$ pounds per flowerpot at a cost of $\backslash (\backslash$$ $4\mathrm{.}00\backslash )$ per pound

Direct labor. $..................................2\mathrm{.}0$ hours per flowerpot at a cost of $\backslash (\backslash$$ $23\mathrm{.}00\backslash )$ per hour

Standard variable manufacturing overhead rate $......\backslash (\backslash$$ $3\mathrm{.}00\backslash )$ per direct labor hour

Budgeted fixed manufacturing overhead $............\backslash$$$23,600$

Standard fixed MOH rate. $..........................\backslash (\backslash$$ $8\mathrm{.}00\backslash )$ per direct labor hour $($DLH$)$ Actual Results 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.