Dawson, Ince is a privatoly heid furniture manufacturer. For August 2020. Dawson had the following standards for one of its products, a wicker chair (Click the ioon to view the standards per chair) The foliowing data were complied regarding actual performance: actual output units (chars) produced, 2,200; square yards of input purchased and used, 6.200, price per square yard, \$6,70; direct manulacturing laboe costs, $9,844; actual hours of input, 920 ; labor price per hour, $10.70. Read the Requirement 1. Show computations of price and efficiency vanances for direct materials and diroct manulacturing labor, Give a plavible explanation of why each vanance occurred. Lets begin by determining the formula used to calculate the actual costs direct materials, then erser the amounts in the formula and calculate the cost. Click the icon to view the standards per chair.) ollowing data were compiled regarding actual porformance: actual output units (chairs) produced, 2,200; square yards of input purchased and us facturing labor costs, $9,844; actual hours of input, 920 ; labor price per hour, $10.70. the requirements. Requirements 1. Show computations of price and efficiency variances for direct materials and plausible explan direct manufacturing labor. Give a plausible explanation of why each variance occurred. 2. Suppose 8,700 square yards of materials were purchased (at $5.70 per square yard), even though only 6,200 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 depariment. Compute the price and efficiency variances under this approach