1 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.)Read the requirements.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 tothe nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). 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.- XRequirementsDL rate variance|× {L1. Compute the direct labor rate variance and the direct labor efficiency variance.2. What is the total variance for direct labor?- X3. Who is generally responsible for each variance?Actual Results4. Interpret the variances.Chic Design allocated fixed manufacturing overhead to production based on standard direct laborhours. Last month, the company reported the following actual results for the production of 2,000flower pots:- XStandard Price and VolumePurchased 19,300 pounds at a cost of $3.50 per pound;.used 18,800 pounds to produce 2,000 potsDirect materials9 pounds per pot at a cost of $3.00 perWorked 3.3 hours per flower pot (6,600 total DLH) at acost of $18.00 per hourDirect materials (resin)-poundDirect labor...Actual variable manufacturingoverhead.........................manufacturing overhead of $21,780Actual fixed manufacturing overhead $64,300Standard fixed manufacturing........Direct labor......3.0 hours at a cost of $19.00 per hour$3.30 per direct labor hour for total actual variableStandard variable manufacturing overhead rate ..... S3.00 per direct labor hourBudgeted fixed manufacturing overhead .......... S65,000Standard fixed MOH rate$11.00 per direct labor hour (DLH)overhead allocated based on actualproduction.......$66,000

Standard costing means where standard is set for various cost element and actual cost is then…

Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards: E (Click the loon to view the standards.) (Click the icon to view the actual results.) Read the requirements. 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). 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. - X Requirements = DL rate variance ] × { L 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. - X 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: Standard Price and Volume Purchased 19,300 pounds at a cost of $3.50 per pound; used 18,800 pounds to produce 2,000 pots Direct materials 9 pounds per pot at a cost of $3.00 per pound Worked 3.3 hours per flower pot (6,600 total DLH) at a .....cost of $18.00 per hour Direct materials (resin) Direct labor.. Actual variable manufacturing overhead.........................manufacturing overhead of $21,780 ....... Direct labor... .... 3.0 hours at a cost of $19.00 per hour S3.30 per direct labor hour for total actual variable Standard variable manufacturing overhead rate.....$3.00 per direct labor hour Actual fixed manufacturing overhead $64,300 Standard fixed manufacturing Budgeted fixed manufacturing overhead ...... S66,000 Standard fixed MOH rate .$11.00 per direct labor hour (DLH) overhead allocated based on actual production.... ... ...... $66,000