Elegant Designs is a manufacturer of large ower pots for urban settings. The company has these standards:

Direct materials (resin). . . . . . . . 13 pounds per pot at a cost of $4.00 per pound
Direct labor. . . . . . . . . . . . . . . . . . . . 2.0 hours at a cost of $24.00 per hour
Standard variable manufacturing overhead rate. . . . $2.00 per direct labor hour
Budgeted fixed manufacturing overhead. . . . . . . . $27,000
Standard fixed MOH rate. . . . . . . . . . . . . . . .$10.00 per direct labor hour (DLH)

Elegant Designs allocates fixed manufacturing overhead to production based on standard direct labor hours. Last month, Elegant Designs reported the following actual results for the production of 1,600 ower pots:

Direct materials. . . . . . . . . . . . . . . . . Purchased 21,100 pounds at a cost of
$4.40 per pound; Used 20,400 pounds to
produce 1,500 pots
Direct labor. . . . . . . . . . . . . . . . . . . . .Worked 2.5 hours per flower pot (3,750 total
DLH) at a cost of $20.00 per hour
Actual variable manufacturing-
overhead. . . . . . . . . . . . . . . . . . . . . . $2.40 per direct labor hour for total actual
variable manufacturing overhead
of $9,000
Actual fixed manufacturing overhead. . . . . . $26,400
Standard fixed manufacturing-
overhead allocated based on-
actual production. . . . . . . . . . . . . . . . . . . . . . $30,000

Calculate and interpret direct materials variances
Refer to the Elegant Designs data set.
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.