Draperies manufactures curtains. To FIGURE OUT a curtain, Jane requires the following inputs:

Direct materials standard:

5 square yards at $5.20 per yard

Direct manufacturing labor standard:

6 hours at $10.10 per hour

During the second quarter, Jane Draperies made 1 comma 300 curtains and used 5 comma 900 square yards of fabric costing $ 29 comma 500. Direct manufacturing labor totaled 7 comma 500 hours for $ 77 comma 250.

Requirement a. Compute the direct materials price and efficiency variances for the quarter.

First, determine the formula and enter the amounts to calculate direct materials actual price of input. (Enter the direct materials actual price of input to two decimalplaces, $X.XX.)

Actual total direct materials cost / Actual quantity of input = Direct materials actual price of input

$29,500 / 5,900 = $5.00 per square yard

Now determine the formula and enter the amounts to calculate the direct materials price variance. Label each variance as favorable (F) or unfavorable (U). (Enter unit costs to two decimal places, $X.XX. Abbreviations used: AO = actual output, BQ = budgeted quantity, DM = direct materials.)

( Actual price of input - ) x Price variance

( - ) x = F

Requirement B Compute the direct manufacturing labor price and efficiency variances for the quarter.