7.4 - The Seneca Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:

Requirement 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Standards Actual Data Actual results in January 2020 were as follows: Direct manufacturing labor: 4,700 hours $144,525 Requirements 1. Compute the January 2020 price and efficiency variances of direct materials and direct manufacturing labor. 2. Prepare journal entries to record the variances in requirement 1. 3. Comment on the January 2020 price and efficiency variances of Seneca Corporation. 4. Why might Seneca calculate direct materials price variances and direct materials efficiency variances with reference to different points in time