Damico, Inc. is a privately held furniture manufacturer. For August 2017, Damico 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, 2,100; square metres of input purchased and used, 6,000; price per square metre, $5.40; direct manufacturing labour costs $9,270; actual hours of input, 900; labour price per hour, $10.30 Required Requirement a. Show computations of price and efficiency variances for direct materials and direct manufacturing labour. 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, and then enter the amounts in the formula and calculate the cost X Actual cost Direct materials Required Data Table a. Show computations of price and efficiency variances for direct materials and direct manufacturing labour. Give a plausible explanation of why each variance occurred. b. Suppose 8,300 square metres of materials were purchased at $5.40 per square metre), even though only 6,000 square metres 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. Standards per Chair per square 3 square metres of input at $ 5.30 metre Direct materials Direct manufacturing labour 0.5 hour of input at $ 10.40 per hour Print Done Print Done