amico, Inc. is a privately held furniture manufacturer. For August 2014, Damico had the following standards for one of its products, a wicker chair Standards per Chair Direct materials 3 square yards of input at $ 5.30 per square yard Direct manufacturing labor 05 hour of input $ 10.10 per hour The following data were compiled regarding actual performance actual costs, 19 503, actual hours of input, 970, labor price per hour. 39.90 put units har produced 2.500 square yards of input purchased and und 7.200, price per square yard 55.40, direct manufacturing labor Read the Requirement 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor Give a plebe explanation of why each variance occurred Lors tegin 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 cost Direct materials Next we will calculate the wil input the budgeted price Budge Dreate Direct manufacturing labor Choose from any wyrumber in the sand then continue to the next of input at $ 5.30 per square yard of input at $ A Requirements al performan rice per hour. 200; price per squ y each variance oc and efficiency va no calculate the al 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 9,500 square yards of materials were purchased at $5.40 per square yard), even though only 7,200 square yards were used. Suppose further that 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. the budgeted price Actual input Print Done] Done the costs for the flexible budget. number in the input fields and then continue to the next