Daley$,$ Inc. is a privately held furniture manufacturer. For August $2020,$ Daley had the following standards for one of its$$ products, a wicker$$ chair:

LOADING...$($Click the icon to view the standards per$$ chair.$)$

The following data were compiled regarding actual performance$$: actual output units$($chairs$)$ produced, $2$ comma $700$; square yards of input purchased and$$ used, $7$ comma $800$; price per square$$ yard, $ $5\mathrm{.}50$; direct manufacturing labor$$ costs, $ $8$ c Show computations of price and efficiency variances for direct materials and

direct manufacturing labor. Give a plausible explanation of why each variance

occurred.

Suppose $10,200$ square yards of materials were purchased $($at $$5\mathrm{.}50$ per

square yard$),$ even though only $7,800$ 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.omma $910$; actual hours of$$ input, $900$; labor price per$$ hour, $ $9\mathrm{.}90.$