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Dawson, int. is a privately held fumiture manutacturer. For August 2020, Dawson had the following standatds for ane of its products, a wickar chair (Click

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Dawson, int. is a privately held fumiture manutacturer. For August 2020, Dawson had the following standatds for ane of its products, a wickar chair (Click the icon to view the standards per chair) The following data were compiled regarding actial perfomance: actual output units (chairs) produced, 2,200, square yards of input purchased and ised, 6,200; price per square yard, 15,70; direct manufacturing labor costs, $9,844 i actual hours of input, 920 , labor price per hour, $10.70. Read the requirements. Requirement 1. Show computations of price and effciency variances for drect materials and drect manufacturing labor. Give a plaus ble explanation of why each variance oceured. Lers begin by determining the formule used to calculate the actual costs of direct materials, then enter the amounts in the fomula and calculate the cost: Data table Requirements 1. Show computations of price and efficiency variances for direct materials and 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 department. Compute the price and efficiency variances under this approach. Requirement 1. Show computations of price and efficiency variances for direct malerials and direct manulacturing labor, Oive a plausible eiplanaton of why each variance oceurmed Let's begin by determining the formula used to calculase the actual costs of diect material, then enter the amounts in the formula and calculate the cost

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