Requirement

1. Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor.

Consider the following data collected for Seaside Homes, Inc.: (Click the icon to view the data table.) Requirement Compute the price, efficiency, and flexible-budget variances for direct materials and direct manufacturing labor. First compute the price, efficiency, and flexible-budget variances for direct materials. Label each variance as favorable (F) or unfavorable (U). Price variance Efficiency variance Flexible-budget variance Data Table Direct Manufacturing Labor Direct Materials 202,000 $ 93,000 Costs incurred: Actual inputs x actual prices Actual inputs * standard prices 209,000 91.000 Standard inputs allowed for actual output x standard prices 227,000 87,000