Dankel, Inc. is a privately held furniture manufacturer. For August 2014 , Dankel had the following standards for one of its products, a wicker chair: The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,700; square yards of input purchased and used, 7,700 ; price per square yard, $5.80; direct manufacturing labor costs, $10,388; actual hours of input, 980 ; 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. Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its nrodicts a wirker chair 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. Next we will calculate the actual input at the budgeted price. Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its nroducts a wicker chair- 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 materials efficiency variance: The production manager may have employed workers or the budgeted materials standards were set too The labor price variance: in labor ratesidue to a The labor efficiency variance: efficient workers being employed or the use of quality materials. Dankel, Inc. is a privately held furniture manufacturer. For August 2014, Dankel had the following standards for one of its nroducts a wicker chair- 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 materials efficiency variance: The production manager may have employed workers or the budgeted materials standards were set too The labor price variance: in labor ratespue to a The labor efficiency variance: efficient workers being employed or the use of quality materials
