Standards12 pounds per pot at a cost of $5.00 perpoundDirect materials (resin)Direct labor.3.0 hours at a cost of $17.00 per hourStandard variable manufacturing.overhead rate$3.00 per direct labor hourBudgeted fixed manufacturing.overhead. $39,900Standard fixed MOH rate$13.00 per direct labor hour (DLH)PrintDone1. Compute the direct material price variance and the direct material quantityvariance.2. Who is generally responsible for each variance?3. Interpret the variances. Earthern Ware is a manufacturer of large flower pots for urban settings. The company has these standards:E (Click the icon to view the standards.)(Click the icon to view the actual results.)Read the requirements.Requirement 1. Compute the direct material price variance and the direct material quantity variance. (Enter the variances as positive numbers. Enter currencyamounts in the formula to the nearest cent and then round the final variance amount to the nearest whole dollar. Label the variance as favorable (F) orunfavorable (U). Abbreviations used: DM = Direct materials)First determine the formula for the price variance, then compute the price variance for direct materials.) = DM price varianceActual ResultsEarthern Ware allocated fixed manufacturing overhead to production based on standard directlabor hours. Last month, the company reported the following actual results for the production of1,100 flower pots:Purchased 14,120 pounds at a cost of $5.30 per pound;used 13,420 pounds to produce 1,100 potsWorked 3.5 hours per flower pot (3,850 total DLH) at acost of $15.00 per hourDirect materialsDirect laborActual variable manufacturing$3.50 per direct labor hour for total actual variableoverhead... manufacturing overhead of $13,475Actual fixed manufacturing overbead. $39,400Standard fixed manufacturingoverhead allocated based on actualproduction$42,900

Name: Standards12 pounds per pot at a cost of $5.00 perpoundDirect material
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Description: Standards12 pounds per pot at a cost of $5.00 perpoundDirect materials (resin)Direct labor.3.0 hours at a cost of $17.00 per hourStandard variable manufacturing.overhead rate$3.00 per direct labor hourBudgeted fixed manufacturing.overhead. $39,900St

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Standards 12 pounds per pot at a cost of $5.00 per . pound Direct materials (resin) Direct labor 3.0 hours at a cost of $17.00 per hour Standard variable manufacturing.overhead rate $3.00 per direct labor hour Budgeted fixed manufacturing.overhead. . $39,900 Standard fixed MOH rate $13.00 per direct labor hour (DLH) Print Done 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances.

Standards 12 pounds per pot at a cost of $5.00 per . pound Direct materials (resin) Direct labor 3.0 hours at a cost of $17.00 per hour Standard variable manufacturing.overhead rate $3.00 per direct labor hour Budgeted fixed manufacturing.overhead. . $39,900 Standard fixed MOH rate $13.00 per direct labor hour (DLH) Print Done 1. Compute the direct material price variance and the direct material quantity variance. 2. Who is generally responsible for each variance? 3. Interpret the variances.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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