X Requirements 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred. 2. Suppose 11,100 square yards of materials were purchased (at $6.00 per square yard), even though only 8,600 square yards were used. Suppose further that variances are identified at their most timely control point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Compute the price and efficiency variances under this approach. Data table Standards per Chair Direct materials 3 square yards of input at $5.80 per square yard Direct manufacturing labor 0.5 hour of input at $10.60 per hour Dager, Inc. is a privately hold furniture manufacturer. For August 2020, Dager had the following standards for one of its products, a wicker chair Click the icon to view the standards per chair) The following data were compiled regarding actual performance actual output units (chairs) produced, 3,000 square yards of input plichased and used. 8,600 price per square yard. $6.00, direct manufacturing labor costs, $9,778; actual hours of input, 940: labor price per hour $10.40 Read the requirements