Requirments:

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 the Seneca Corporation.

4. Why might Seneca calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?

Please show work and calucations

Tha Seneca Corporation manufactures lampe. It has set up the following standarda per frihed unit for direct materials and direct manufacturing labor (Click the icon to view the standarde.) The number of finished units budgeted for January 2017 was 9,900; 9,750 units were astually produced. (Click the loon to view Actual data) Assume that there was no beginning wertory of either direct materials or frihed urits. During the mowa, materials purchased amounted to 98,000 15., at a total cost of $495,000. Irpus price variances are isolated upon purchase. Input efficiency variances are isolated at the time of usage. Reed its Requirement 1. Compute the January 2017 price and efficiency variances of drect materals and cirect manufacturing labor Let's begin by calculating the actual inaut at the budgeted rica Round your answers to the nearest whole dollar Actual input Budgeted price Coal Droot materials purchases Drept materials usage Dront manufacturing bar Actual Data X Requirements Standards Actual results in January 2017 were as follows: Direct materials: 97,000 lb. sud Direct manufacturing labor: 4,800 hours $ 161,200 1. Complete January 2017 price and efficiency variances of direct materials and direct manufacturing labor. Prepare journal entries to record the variances in requirement 1. Comment on the January 2017 price and efficiency variances of Seneca Corporation. 4 Why might Seneca calculate direc: materials price variances and direct materials efficiency variances with reference a different parts in time? Direct materials: 10 ib. at $4.90 perb Direct manufacturing or 0.5 hour $0 per hour $ 49.00 1500 Print Done Print Done Print Done