QUESTION:

The Chemung Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased manufacturing labor: amounted to 98,400 Ib., at a total cost of $526,440. Input price variances are isolated upon purchase. Input-efficiency variances B (Click the icon to view the standards.) are isolated at the time of usage. The number of finished units budgeted for January 2020 was 9,840; 9,700 units were actually produced. Read the requirements. B (Click the icon to view actual data.) Requirement 1. Compute the January 2020 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) 98,400 x $ 5.20 = $ 511,680 Direct materials (usage) 96,500 x 5.20 = $ 501,800 Direct manufacturing labor 4,800 x 29.00 = 139,200 Next determine the formula and calculate the costs for the flexible budget. Budgeted input for actual output x Budgeted price = Flexible budget cost Direct materials 97,000 x $ 5.20 = $ 504,400 Direct manufacturing labor 4,850 x $ 29.00 = $ 140,650 Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U). Price Efficiency variances variances Direct materials Direct manufacturing labor