Elegance is a manufacturer of large lower pots for urban settings. The company h

Question

Elegance is a manufacturer of large lower pots for urban settings. The company has these standards (Click the icon to view the standards) {dick te icon to view the actual rests.) e direct material price variance and the direct material quantty variance 2. Who is generally 3. Interpret the variaces. Standards Requirement 1. Compute th amounts in the formula to th Abbreviations used:DM-DDirect materials (resin) ers. Enter currency able (F) or unfavorable ( 2 pounds per pot at a cost of $4.00 First detemine the formula per pound 3.0 hours at a cost of $20.00 per hour Direct labor Standard variable manufacturing overhead rate Budgeted fixed manufacturing overhead $7.00 per direct labor hour Determine the formada for the 32,200 $6.00 per direct labor hour (DLH) Requirement 2 Who is gend Print Done ovarsty variance. Requirement 3. Inerpeet the variances Choose bom any hcrenter any number inro rout heidsand then contnue to the next question. Dent Labor CastV W E

Explanation / Answer

1.

2. The purchasing department is responsible for the materials price variance. The production department is responsible for the materials quantity variance.

3. Both the variances are unfavorable.

Actual quantity x (Actual price - Standard price) = DM price variance 24350 x ($4.10 - $4.00) = $2435 U

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