Requirement 1. Compute the January 2020 price and ef Let's begin by calculating the actual input at the budgeted 1. Compute the January 2020 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 2020 price and efficiency variances of Monroe Corporation. 4. Why might Monroe calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? Standards Direct materials: 10lb, at $5.20 per Ib. Direct manufacturing labor: 0.5 hour at $31 per hour $52.00 Actual Data 15.50 Requirement 3. Comment on the January 2020 price and efficiency variances of Livingston Corporation. A key point is that all of these efficiency variances are likely to be They are so small as to be nearfy mearinglest Fiuctuations about standards are bound to occur in a random fashion. Practically, from a control viewpoint, a standard is a band or range of acceptable performance rather than a single-figure measure. Requirement 4, Why might Livingston calculate direct materials price variances and direct materials efficioncy variances with reference io diflarurt points in time? The purchasing point is where responsibility for is found most often. The production point is where responsibity for efficiency variances is found most offen. Livingston Corporation may calculate variances at diferent points in fme to te in with ve different tesponsibility areas Requirement 1. Compute the January 2020 price and efficiency variances of drect materials and direct manulacturing labor: Lers begh by calculating the actuat input at the budpeted price (Round you ansmers to the namest whele deitet) Next determine the formula and calculate the costs for the flenitle budget. Now compute the price and efficiency variances for direct materials and drect manufacturing labor. Label each variance as favorable (F) untavorable (U). Requirement 2 . Prepare journal entries to record the variances in reguirement 1 Next prepare the joumal entry for direct materials efficiency variance