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Dautrich, Inc, is a privately held furniture manufacturer. For August 2017, Dautrich had the following standards for one of its products, a wicker chail This Standards per Chair Direct materials Direct manufacturing labor 0.5 hour of input at $10.40 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,300; square yards of input purchased and used, 4,300: price per square yard, $5.70 direct manufacturing labor costs, $9,991; actual hours of input, 970; labor price per hour, $10.30. Requirement 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred. Let's begin by determining the formula used to calculate the actual costs of direct materials, then enter the amounts in the formula and calculate the cost. Actual cost Direct materials Next we will calculate the actual input at the budgeted price. Budgeted price Cost Direct materials Direct manufacturing labor Determine the formula and calculate the costs for the flexible budget. Flexible budget cost Direct materials Direct manufacturing labor Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U) Price Efficiency variances variances Direct materials Direct manufacturing labor Price Efficiency variance variance Direct materials Choose from any list or enter any number in the input fields and then continue to the next

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