Dawson, Inc. is a privately hold furniture manufacturer For August 2020, Dawson 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 compled regarding actual performance actual output units (chairs) produced, 2200 square yards of input purchased and used. 6. 200, price per square yard $5 70 direct manufacturing labor costs $9,844 actual hours of input, 920, labor price per hour $10 70 Read the requirements GE 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 Lofs begin by determining the formula used to calculate the actual conts of direct materiah, then enter the amounts in the formula and calculate the cost Adual input Actual price Actual cost Bred matel 5 200 57 35 340 Next we will calculate the actual input at the budgeted price Actual Input Budgeted price Cool Direct materia 6.200 55 -S 34.100 Direct manufacturing labor 105 = 5 9.660 Determine the forms and calculate the costs for the flexible budget Budgeted input for actual output Budgeted price Flexible budget cost Direct material 6,600 36.300 1100 920 10 Dawnon Inc is a priately held furniture manutacturer For August 2020, Davison had the following standards for one of its products, a wicker chain Click the icon to view the standards per chale The following data were compiled regarding actual performance actual output units (chairs) produced, 2,200 square yards of input purchased and used, 6,200 price per square yard 55 70 direct manufacturing labor costs 59,844 actual hours of input, 920, labor price per hour 510 70 Read the sements Text we calculate the actual put at the budgeted pace Adusliput Budgeted price Cost Oled materiale 8200 55 S 34 100 Dired mancuring labor 920 105 5 9.660 Determine the formula and calculate the costs for the flexible budget Budgeted input for acut output Budgeted price Flexible budget cost Direct 6.500 55 S 36 300 Ormancing labor 1.100 10.5 5 11550 Now compute the price and efficiency variances for Grect materials and direct manufacturing labor Label each variance as favorable (F) or unfavorable (U) Price Efficiency Valances variances De Orembo Data table - - X Standards per Chair Direct materials 3 square yards of input at $5.50 per square yard Direct manufacturing labor 0.5 hour of input at $10 50 per hour Print Done