Consider the following data collected for Country Homes Inc. :

Requirement

Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.

1st step looks like this..

Direct Direct Materials Manufacturing Labor 94,000 93,000 Costs incurred: Actual inputs x actual prices 199,000 S 204,000 Actual inputs x standard prices Standard inputs allowed for actual output x standard prices 217,000 78,000