Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . .11 pounds per pot at a cost of $6.00 per poundDirect labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.0 hours at a cost of $20.00 per hourStandard variable manufacturing overhead rate. . . . .$5.00 per direct labor hourBudgeted fixed manufacturing overhead. . . . . . . . .$24,000Standard fixed MOH rate. . . . . . . . . . . . . . . . . . . . . . . . .$7.00 per direct labor hour (DLH) 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.)Requirements1. 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 thecurrency 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 manufacturingoverhead.Variable overheadrate variance%3Dх ( Actual ResultsChic 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:Purchased 23,700 pounds at a cost of $6.40 per pound;used 23,000 pounds to produce 2,000 potsWorked 2.3 hours per flower pot (4,600 total DLH) at acost of $18.00 per hour$5.40 per direct labor hour for total actual variable. manufacturing overhead of $24,840Direct materials..Direct laborActual variable manufacturingoverheadActual fixed manufacturing overhead $23,400Standard fixed manufacturingoverhead allocated based on actualproduction$28,000....

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Description: Direct materials (resin). . . . . . . . . . . . . . . . . . . . . . . . . .11 pounds per pot at a cost of $6.00 per poundDirect labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2.0 hours at a cost of $20.00 per hourStandard variabl

1. Calculation of variable overhead variances: a) Variable overhead rate variance is calculated as…

Answered: Requirements 1. Compute the variable…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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)