3 of 4 2014. Dwyer had the following standards for one of its products, a wicker chair: i Requirements 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred. 2. Suppose 8,700 square yards of materials were purchased (at $6.00 per square yard), even though only 6,200 square yards were used. Suppose further variances are identified at their most timely control point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Compute the price and efficiency variances under this approach. Print Done ws to see incorrect answers. DOLL * Instructor-created question Dwyer, Inc. is a privately held furniture manufacturer. For August 2014, Dwyer had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials 3 square yards of input at $ 5.90 per square yard Direct manufacturing labor 0.5 hour of input at $ 10.70 per hour 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, $6.00, direct manufacturing labor costs, $9,765; actual hours of input, 930, labor price per hour, $10.50. Read the requirements Requirement 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each varianco occurred. Let's begin by determining the formula used to calculate the actual costs of direct materials, then enter the amounts in the formula and calculate the cost. Actual price Actual input = Actual cost Direct materials 6.200 = $ 37,200 Move your pointer over or tap on the cells with red arrows to see incorrect answers. Eted 54.3 KB Available on this device DELL Dwyer, Inc. is a privately held furniture manufacturer. For August 2014. Dwyer had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials 3 square yards of input at $ 5.90 per square yard Direct manufacturing labor 0.5 hour of input at $ 10.70 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,200; square yards of input purchased and square yard, $6.00; direct manufacturing labor costs, $9,765; actual hours of input, 930; labor price per hour, $10.50. Cor Read the requirements. LUCTS Next we will calculate the actual input at the budgeted price. rea Actual input 6,200 930 Direct materials Budgeted price 5.9 10.7 Cost 36,580 = $ $ Direct manufacturing labor 9,951 Move your pointer over or tap on the cells with red arrows to see incorrect answers. elected 543 KB Available on this device DELL 09 Instructor-created question Dwyer, Inc. is a privately held furniture manufacturer. For August 2014, Dwyer had the following standards for one of its products, a wicker chair Standards per Chair Direct materials 3 square yards of input at $5.90 per square yard Direct manufacturing labor 0.5 hour of input at $10.70 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2.200; square yards of input purchased and used, 6,200, pric square yard, $6.00; direct manufacturing labor costs, $9,765; actual hours of input, 930; labor price per hour, $10.50. Read the requirements Co old Determine the formula and calculate the costs for the flexible budget. Drea Budgeted price * Direct materials 5.9 Direct manufacturing labor 10.7 Budgeted input for actual output 6,600 1.100 - - = Flexible budget cost $ 38,940 $ 11,770 Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Move your pointer over or tap on the cells with red arrows to see incorrect answers. selected 54.3 KB Available on this device DELL Dwyer, Inc. is a privately held furniture manufacturer. For August 2014, Dwyer had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials 3 square yards of input at $5.90 per square yard Direct manufacturing labor 0.5 hour of input at $ 10.70 per hour 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, $6.00; direct manufacturing labor costs, 59,765, actual hours of input, 930; labor price por hour, $10.50. Read the requirements Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price variances 620 U 186 Efficiency variances 2,360 F 18190F Direct materials Direct manufacturing labor $ $ S F's Move your pointer over or tap on the cells with red arrows to see incorrect answers. clected 54.3 KB Available on this device DELL F42