Dunn, Inc. is a privately held furniture manufacturer. For August, Dunn had the following standards for one of its products, a wicker chair:

LOADING...$($Click the icon to view the standards per chair.$)$

The following data were compiled regarding actual performance: actual output units $($chairs$)$ produced, $2$ comma $100$; square metres of input purchased and used, $3$ comma $800$; price per square metre, $ $5\mathrm{.}50$; direct manufacturing labour costs, $ $9$ comma $776$; actual hours of input, $940$; labour price per hour, $ $10\mathrm{.}40.$

RequiredLOADING...

Question content area bottom

Part $1$

Requirement $1.$ Show computations of price and efficiency variances for direct materials and direct manufacturing labour. Give a plausible explanation of why each variance occurred.

Let's begin by determining the formula used to calculate the actual costs of direct materials, and then enter the amounts in the formula and calculate the cost. $($Round unit costs to the nearest cent. Round the actual cost to the nearest whole dollar.$)$

x

$=$

Actual cost

Direct materials

x

$=$

Part $2$

Next, we will calculate the actual input at the budgeted price. $($Round the budgeted price to the nearest cent. Round the co

Standards per Chair

Direct materials

$2$ square metres of input at

$$5\mathrm{.}30$

per square metre

Direct manufacturing labour

$0\mathrm{.}5$ hour of input at

$$10\mathrm{.}30$

per hour