The Yates Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour: (Click the icon to view the standards.) The number of finished units budgeted for January was 10,000;9,850 units were actually produced. (Click the icon to view actual data.) Input-efficiency variances are isolated at the time of usage. Required Standards Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Begin by calculating the price variances then, calculate the efficiency variances. (Round all intermediary calculations and you Requirement 2. Prepare journal entries to record the variances in requirement 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any j Next, prepare the journal entry for direct materials efficiency variance. Next, prepare the journal entry for direct materials efficiency variance. Requirement 3. Comment on the January price and efficiency variances of Yates Corporation. A key point is that likely to be They are so Fluctuations about standards are bound to occur in a fashion. Practically, from a control viewpoint, a standard is a band or range of acceptable performance rather than a single-tgure measure. Requirement 4. Why might Yates calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? The purchasing point is where responsibility for is found most often. The production point is where responsibility for is found most often. Yates Corporation may calculate variances at different points in time to tie in with