Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Actual input 99,500 X Budgeted price = Cost $ 5.10 $ 507,450 97,500 4,900 $ 5.10 $ 497,250 $ 31.00 $ 151,900 Next, determine the formula and calculate the costs for the flexible budget. Direct materials Direct manufacturing labour Budgeted input for actual output x 99,000 4,950 5.10 Budgeted price $ Flexible budget cost = $ 504,900 $ = $ 153,450 31.00 Now, compute the price and efficiency variances for direct materials and direct manufacturing labour. Label each variance as favourable (F) or unfavourable (U). Price Efficiency variances variances Direct materials $ 19,900 U $ 7,650 F Direct manufacturing labour $ 8,575 U $ 1,550 F