Daley, Inc. is a privately held furniture manufacturer For August 2014. Daley had the following standards for one of its products, wicker chair Standards per Chair 2 square yards of input at 5.70 per square yard 0.5 hour of Input at $ 10.10 per hour Direct materials Direct manufacturing labor The following data were compled regarding actual performance actual output units (chairs) produced, 2,900; square yards of input purchased and used 5,500 price per square yard, $5.80, direct manufacturing labor costs, 58,910; actual hours of input 900, labor price per hour, $9.90 Read the raguremants Requirement 1. Show computations of price and efficiency variances for direct materias and direct manufacturing labor. Gie a plausible explanation of why each variance occurred Lat's begin by datermining the formula used to calculate the actual costs of drect materials, then enter the amounts in the formula and calculate the cost Requrements Actual cost Direct materials Next we will cakulate the actual input at the budgetad price 1. Show computations of price and efficiency variances for direct materias and direct manufacturing labor. Give a plausible explanation ofwhy each variance occurred Actual inpl Budgeled price Cost Direct materials Direct manulacturing labor Detamine the formula and cakulate tha costs for the flaxibla budgat 2. Suppose 8,000 square yards of materiab were purchased (at $5.80 per square yard even though only 5,500 squere yards were used Suppose further that variances are identified at thair most timaly control paint accordingly, drect materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the pruduction department. Compute the price and efficlency varlances under this approach Flexible budget cost - Direct manulacturing labor Print Done Now computn tha prica and efficiency variances for dract materials and drect manufachuring lahor Label each varianca as faorable F) or unfavorable (U) Price variances Direct materials Direct manufacturing labor Now give a plausible explanation of why each variance occurred. Begin with the direct material variances. Choose from any list or enter any number in the input tialds and then continue to the next