Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . . 11 pounds per pot at a cost of $6.00 per pound Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ....

Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . .	11 pounds per pot at a cost of $6.00 per pound
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	2.0 hours at a cost of $20.00 per hour
Standard variable manufacturing overhead rate. . . . .	$5.00 per direct labor hour
Budgeted fixed manufacturing overhead. . . . . . . . .	$24,000
Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . . . . . . .	$7.00 per direct labor hour (DLH)

Extracted text: Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: E (Click the icon to view the standards.) E (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? Requirement 1. Compute the variable manufacturing overhead variances. What do each of these variances tell management? (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).) Begin by computing the variable manufacturing overhead rate variance. First determine the formula for the rate variance, then compute the rate variance for variable manufacturing overhead. Variable overhead rate variance %3D х (


Extracted text: Actual Results Chic Design 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: Purchased 23,700 pounds at a cost of $6.40 per pound; used 23,000 pounds to produce 2,000 pots Worked 2.3 hours per flower pot (4,600 total DLH) at a cost of $18.00 per hour $5.40 per direct labor hour for total actual variable . manufacturing overhead of $24,840 Direct materials.. Direct labor Actual variable manufacturing overhead Actual fixed manufacturing overhead $23,400 Standard fixed manufacturing overhead allocated based on actual production $28,000 ....