Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its products, a wicker chair Standards per Chair Direct materials Direct manufacturing labor 2 square yards of input at $ 5.10 per square yard 0.5 hour of input at $ 10.50 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,200 square yards of input purchased and used, 4,000; price per square yard, $5.20, direct manufacturing labor costs. $9,858; actual hours of input, 930, labor price per hour, $10.60 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 11 Next we will calculate the actual input at the budgeted price Budgeted price Actual input Direct materials Direct manufacturing labor Determine the formula and calculate the costs for the flexible budget. Choose from any list or enter any number in the input fields and then continue to the next question Standards per Chair el, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its products, a wicker chair Standards per Chair et materials 2 square yards of input at $ 5.10 per square yard at manufacturing labor 0.5 hour of input at 10.50 per hour Hollowing data were compiled reg A Requirements - X purchased and used, 4,000 square yard, $5.20; direct manut d the requirements 1. Show computations of price and efficiency variances for direct materials and quirement 1. Show computations direct manufacturing labor. Give a plausible explanation of why each variance usible explanation of why eas lance occurred. occurred. 2. Suppose 6,500 square yards of materials were purchased at $5.20 per square begin by determining the formu find calculate the cost. yard), even though only 4,000 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 rect materials purchasing department rather than to the production department. Compute the price and efficiency variances under this approach. xt we will calculate the actual inpu Print Done irect materials irect manufacturing labor etermine the formula and calculate the costs for the flexible budget. hoose from any list or enter any number in the input fields and then continue to the next question Dankel, Inc. is a privately held furniture manufacturer For August 2014. Dankel had the following standards for one of its products, a wicker chair Standards per Chair Direct materials Direct manufacturing labor 2 square yards of input at $ 5.10 per square yard 0.5 hour of input at $ 10.50 per hour The following data were compiled regarding actual performance actual output units (chairs) produced, 2.200 square yards of input purchased and used 4.000 price per square yard, 55.20, direct manufacturing labor costs $9.858, actual hours of input 930: labor price per hour $10.60 Read the requirements uages Budgeted price of Actual input Direct materials Direct manufacturing labor Determine the formula and calculate the costs for the flexible budget ble budget cost of Direct materials Direct manufacturing labor Now compute the price and efficiency variances for direct materials and direct manufacturing labor Label each variance as favorable (For unfavorable Price variances Efficiency variances Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its products, a wicker chair Standards per Chair Direct materials 2 square yards of input at $ 5.10 per square yard Direct manufacturing labor 0.5 hour of input at $ 10.50 per hour The following data were compiled regarding actual performance actual output units (chairs) produced, 2,200 square yards of input purchased and used, 4,000 price per square yard, $5.20, direct manufacturing labor costs, $9,858, actual hours of input, 930, labor price per hour, $10.60. Read the requirements Price Efficiency variances variances Direct materials Direct manufacturing labor Now give a plausible explanation of why each variance occurred. Begin with the direct material variances The materials price variance: There was an unexpected in materials price per square yard due to competition The production manager may have employed workers or the budgeted materials standards were set to The materials efficiency variance: 0 The labor price variance: in labor rates due to a Choose from any list or enter any number in the input fields and then continue to the next question Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its products, a wicker chair: 03 Standards per Chair Direct materials 2 square yards of input at $ 5.10 per square yard Direct manufacturing labor 0.5 hour of input at $ 10.50 per hour The following data were compiled regarding actual performance, actual output units (chairs) produced, 2,200 square yards of input purchased and used, 4,000, price per square yard, $5.20; direct manufacturing labor costs, $9,858, actual hours of input, 930; labor price per hour, $10.60. Read the requirements. 11 variance 0 Direct materials Direct manufacturing labor 04 Now give a plausible explanation of why each variance occurred. Begin with the direct material variances The materials price variance: There was an unexpected in materials price per square yard due to competition The production manager may have employed workers or the budgeted materials standards were she too The materials efficiency variance: 11 The labor price variance: in labor rates due to a officient workers being employed or the use of 0 The labor efficiency variance: quality materials