Standards

Direct materials: $10$ lb $.$ at $$5\mathrm{.}40$ per lb$.$

$ $54\mathrm{.}00$

Direct manufacturing labor: $0\mathrm{.}5$ hour at $$29$ per hour

Actual Data

Actual results in January $2020$ were as follows:

Direct materials: $96,500lb.$ used

Direct manufacturing labor: $4,700$ hours

$ $143,350$

Requirements

Compute the January $2020$ 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 $2020$ price and efficiency variances of Yates

Corporation.

Why might Yates calculate direct materials price variances and direct

materials efficiency variances with reference to different points in time?Requirement $1.$ Compute the January $2020$ price and efficiency variances of direct materials and direct manufacturing labor.

Let's begin by calculating the actual input at the budgeted price. $($Round your answers to the nearest whole dollar.$)$