Ryan Upholstery Inc. produces upholstered chairs. Each chair requires the following inputs: Direct materials standard: 8 yards of fabric at $8 per yard Direct manufacturing labor standard: 6 hours at $10.50 per hour During the quarter, Ryan, Inc. produced 5,000 chairs and used 38,000 yards of fabric costing $266,000. Direct manufacturing labor totaled 26,000 hours for $260,000 Required: 1. Compute the direct materials price and efficiency variances. Indicate whether the variances are favorable or unfavorable. (8 points) 2. Explain the material variances. What do they mean? How might a manager interpret them? Be sure to be specific so you demonstrate that you understand variances. (2 points) HTML Editor