Dager, Inc. is a privately held furniture manufacturer. For August 2017, Dager had the following standards 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, 2,000; square yards of input purchased and used, 3,700; price per square yard, $5.70; direct manufacturing labor costs, $10,165; actual hours of input, 950; labor price per hour, $10.70. 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 variance 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 cost Direct materials Data Table 1 Standards per Chair 2 square yards of input at $ 5.50 per square yard 0.5 hour of input at $ 10.50 per hour Direct materials Direct manufacturing labor Dager, Inc. is a privately held furniture manufacturer. For August 2017, Dager had the following standards 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, 2,000; square yards of input purchased and used, 3,700; price per square yard, $5.70; direct manufacturing labor costs, $10,165; actual hours of input, 950; labor price per hour, $10.70. 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 variance 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 cost Direct materials Data Table 1 Standards per Chair 2 square yards of input at $ 5.50 per square yard 0.5 hour of input at $ 10.50 per hour Direct materials Direct manufacturing labor