Data table

	Direct Materials	Direct Manufacturing Labor
Costs incurred: Actual inputs actual prices	$206,000	$94,000
Actual inputs standard prices	205,000	93,000
Standard inputs allowed for actual output standard prices	200,000	81,000

Requirement

Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.

Question content area bottom

Part 1

First compute the price, efficiency, and flexible-budget variances for direct materials. Label each variance as favorable (F) or unfavorable (U).

Price variance
Efficiency variance
Flexible-budget variance