Subject : Accounting 1. Show computations of price and efficiency variances for direct materials anddirect manufacturing labor. Give a plausible explanation of why each varianceoccurred.2. Suppose 8,700 square yards of materials were purchased (at $5.70 persquare yard), even though only 6,200 square yards were used. Supposefurther that variances are identified at their most timely control point;accordingly, direct materials price variances are isolated and traced at the timeof purchase to the purchasing department rather than to the productiondepartment. Compute the price and efficiency variances under this approach.Show Transcribed TextgRequirement 1. Show computations of price and efficiency variances for direct materials and directmanufacturing labor. Give a plausible explanation of why each variance occurred.Direct materialsLet's begin by determining the formula used to calculate the actual costs of direct materials, then enterthe amounts in the formula and calculate the cost.ĈĊXX==Actual cost Dawson, Inc. is a privately held furniture manufacturer. For August 2020, Dawson had the followingstandards for one of its products, a wicker chair:(Click the icon to view the standards per chair.)The following data were compiled regarding actual performance: actual output units (chairs) produced,2,200; square yards of input purchased and used, 6,200; price per square yard, $5.70; directmanufacturing labor costs, $9,844; actual hours of input, 920; labor price per hour, $10.70.Read the requirements.Show Transcribed TextStandards per Chair3 square yards of input at $5.50 per square yardDirect materialsDirect manufacturing labor 0.5 hour of input at $10.50 per hour

Name: Subject : Accounting 1. Show computations of price and efficiency vari
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: Subject : Accounting 1. Show computations of price and efficiency variances for direct materials anddirect manufacturing labor. Give a plausible explanation of why each varianceoccurred.2. Suppose 8,700 square yards of materials were purchased (at $5