Dawson Inc. is a privately held furniture manufacturer. For August 2018, Dawson had the following standards for one of its products, a wicker chair Standards per Chair Direct materials 2 square metres of input at $5.60 per square metre Direct manufacturing labour 0.5 hour of input at $10.00 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,500; square metres of input purchased and used, 4,700, price per square metre, $5.80; direct manufacturing labour costs, $9,306, actual hours of input, 940; labour price per hour, $9.90. Required Let's begin by determining the formula used to calculate the actual costs, and then enter the amounts in the formula and calculate the costs. Actual cost X Direct materials x Direct manufacturing labour Next we will calculate the actual input at the budgeted rate Choose from any list or enter any number in the input fields and then continue to the next question Next Dawson Inc. is a privately held furniture manufacturer. For August 2018, Dawson had the following standa Direct materials square metre Actual input er hour Direct manufacturing labour The following data were compil used, 4,700, price per squaren Required Actual rate units (chairs) produced, 2, $9,306, actual hours of in Budgeted input for actual output Let's begin by determining the Budgeted rate hen enter the amounts in t Direct materials X Direct manufacturing labour X Next we will calculate the actual input at the budgeted rate. 2 square metres of input at $ 0.5 hour of input at $ Actual input Diled regarding actual performance: actua metre, $5.80; direct manufacturing labor Actual rate metres o ur price Budgeted input for actual output e formula used to calculate the actual cos Budgeted rate nd calcul X Actual cost x X ual input at the budgeted rate. er any number in the input fields and then continue to the next question. Next we will calculate the actual input at the budgeted rate. Actual input X Budgeted rate = Cost Direct materials Direct manufacturing labour II X 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 Determine the formula and calculate the costs for the flexible budget. X Flexible budget cost Direct materials X Direct manufacturing labour X Now compute the rate and efficiency variances for direct materials and direct manufacturing labourhkabel each variance as favourable (F) or Dawson Inc. is a privately held furniture manufacturer. For August 2018, Dawson had the followi Direct materials square metre er hour Direct manufacturing labour Actual input The following data were compil used, 4,700; price per squarer Actual rate Required Budgeted input for actual output units (chairs) prod $9,306, actual hou Determine the formula and calc Budgeted rate Direct materials Direct manufacturing labour Now compute the rate and efficiency variances for direct maternals and direct manufactumg tao Choose from any list or enter any number in the input fields and then continue to the next Eld furniture manufacturer For August 2018, Dawson had the following standards for one of its produc Standards per al 2 square metres of input at $ 0.5 hour of input at $ Actual input piled regarding actual performance: actu: e metre, $5.80; direct manufacturing laboi Actual rate metres of in ur price per Budgeted input for actual output alculate the costs for the flexible budget. Budgeted rate X Flexible budget cos X ficiency variances for direct materials and direct manufacturing labour Label each variance as favour used, 4,700, price per square metre, $5.80, direct manufacturing labour costs, $9,306, actual hours of input, 940; labour price per hour, $9.90 Required Direct manufacturing labour Give a plausible explanation of why each variance occurred. Begin with the direct material variances. The materials rate variance There was an unexpected in materials price per square metre due to competition The materials efficiency variance. The production manager may have employed workers, or the budgeted materials standards were set too Choose from any list or enter any number in the input fields and then continue to the next question. uhlavourable (U). Rate Efficiency variances variances Direct materials Direct manufacturing labour Give a plausible explanation of why each varis red Renin with the firert materia F Choose from any list or enter any number in fields and then continue to the U The materials rate variance: There was an unexpected in materials price per square in The materials efficiency variance. The production manager m workers were set too decrease Choose from any list or enter any number in the input field to the next question increase i w DE EE riance occurred. Begin with the direct material variances. s an unexpected in materials price per square metre due to competition workers, or the budi rds uction manager may have employed too decreased in the input fields and then continue to the next question. increased Next 4) ENG EL mpiled regarding actual performance actual output units (chairs) produced, 2,500, square metres re metre, $5.80; direct manufacturing labour costs, $9,306; actual hours of input, 940; labour pric higher-skilled 7 of why each variance occurred. Begin with the direct lower-skilled There was an unexpected in mate re due to iance. The production manager may have employed workers, or the budgeted m were set too ter any number in the input fields and then continue to the next question. 700; price per square metre, $5.80; direct manufacturing labour costs, $9,306, actual hours of d NalluIalluny dvoui plausible explanation of why each varian with the direct material variances. loosely terials rate variance: There was ar in materials price per square strictly aterials efficiency variance: The productic ive employed worke were set too e from any list or enter any number in the input fields and then continue to the next questic