Question 2: E7-29 (similar to) Question Help Settings The Madison Corporation manufactures lamps. It has set Assume that there was no beginning inventory of either up the following standards per finished unit for direct direct materials or finished units. During the month, materials and direct manufacturing labor materials purchased amounted to 98,400 lb., at a total (Click the icon to view the standards.) cost of $541,200. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the The number of finished units budgeted for January 2017 time of usage was 9,840 9,750 units were actually produced (Click the icon to view actual data) Read the equirements Requirement 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar), Actual input x Budgeted price Cost Direct materials (purchases) Direct materials (usage) Direct manufacturing labor X X i Standards $ 53.00 Direct materials: 10 lb. at $5.30 per lb. Direct manufacturing labor 0.5 hour at $31 per hour 15.50 Print Done hand i Actual Data eare Actual results in January 2017 were as follows: Direct materials: 96.500 lb. used Direct manufacturing labor: 4,800 hours $ 157,200 Print Done w Requirements - 1. Compute the January 2017 price and efficiency variances of direct materials and direct manufacturing labor 2. Prepare journal entries to record the variances in requirement 1 3. Comment on the January 2017 price and efficiency variances of Madison Corporation 4. Why might Madison calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? Print Done