Davidow, Inc is a privatety heid furnture thanufacturet. For August 2020 , Davisow had fre folcwing standards for one of iss proctucts, a wicker ehair: (Click the ioon io view the standards per chait] manufacturing labor oosts, 59,999 , actual hourt of inpol, 990, labor poloe per hour, 510,10 . Read the cepuirementa. Let's begin by deterrining the fortnula used to calcula's the actual costs of direct materials, then enter the amounts in the farmula and calculain the cost. Next we will calculate the actual incut at the budgeted price Uavidow, Inc: is a privately held fumture manufacturer. For August 2020 , Davidow had the following standards for one of its products, a wicker chair: Iit (Click the icon to view the standards per char.) The following data were complled regarding actual perfomtance: actual output units (chairs) produced, 2,100; square yards of input purchased and used, 5,900; price por square yard, $5. 40, direct manulacturing labor costs, $9,998; actual hours of input, 900 ; labor price per hour, $10.10 Read the cequitements. Now ghe a pisusible explaration of why each vanance oceured Begin with the drect materia velances. The malerials price variance. There was an unexpected The mastenas effionecy variante. The proouction manager may heve omployed Wohers ce the tudgeled mareiale tandards were set too Davidow, inc. is a privately heid furniture manutactures. For August 2020, Davidow had the following standards for one of its products, a wicker chair: IX (C) (Clck the icon to view the standards per chair) The folowing data were compied regarding actual porformance: actual output units (chairs) produced, 2.100; square yards of input purchased and used, 5,900; price per square yard, 55.40, direct manufacturing labor costs, $9,999; actual hours of ingut, 990 , labor price per hour, $10,10. Read the cequirements The materiais efficiency variance: The production managet may have emplayed workers or the budgeted materials standards were set too The labor price vasiance:- in labor rates due to a The iabor eflicency variance: afficient wokkers boing empioged or the use of qualty materials. Requirement 2. Suppose 8. 200 square yards of materiak were purchased (a. $5.40 per square yard). even though ony 5.900 square yards were used. Suppose further that variances are identifed at their most tmely control point, according'y, drect materialt price varances are isolated and traced at the time of purchase to the purchasing department razher than to the productian department. Comoute the perce and efficiectoy variances under this approach. Begin wit recalcialaing the cols using the information provided for the abemative approach. Davidow, Inc, is a peivasely held furniture mandacturer. For August 2000 , Davidow had the following standards for one of its products, a wicker chair; manufacturing labor costs. 59,999 , actual hours of input, 990; labor price per hour, $1010. Revad the reguirements. tione coercule the drect materias pree and effictency variances. Latel each variance as favoracle (F) or unfavorable (U)
