Davidow, Inc. is a privately held furniture manufacturer For August 2017, Davidow 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, 2,000 square yards of input purchased and used, 3,600 price per square yard, $5.40, direct manufacturing labor costs $9,801, actual hours of input 990, labor price per hour, $9.90 Read the requirements The labor price variance A reduction in labor rates due to a recession The labor efficiency variance: More efficient workers being employed or the use of higher quality materials. Requirement 2. Suppose 6,000 square yards of materials were purchased at $5.40 per square yard), even though only 3,600 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 purchasing department rather than to the production department Compute the price and efficiency variances under this approach Begin with recalculating the costs using the information provided for the alternative approach Actual input Actual cost Flexible budget cost Purchasing Production Budgeted price 19080 9900 28980 Gintor a number in the edit fields and then click Check Answer. LOUIS, 59,001, actual hours wirel & Requirements BV i Data Table - X fials. Direct materials Direct manufacturing labor Standards per Chair 2 square yards of input at $ 5.30 per square yard 0.5 hour of input at $ 10.00 per hour pugh on accordin ther tha Print Done Print Done 19080 9900 28980 er in the edit fields and then click Check