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Question MATERIALS AND MANUFACTURING LABOR VARIANCES, STANDARD COSTSDunn, Inc., is a privately held furniture manufacturer....

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MATERIALS AND MANUFACTURING LABOR VARIANCES, STANDARD COSTSDunn, Inc., is a privately held furniture manufacturer. For August 2018, Dunn had the following standards for one of its products, a wicker chair:Standards per ChairDirect materials2 square yards of input at $5 per square yardDirect manufacturing labor0.5 hour of input at $10 per hourThe following data were compiled regarding actual performance:actual output units (chairs) produced, 2,000;square yards of input purchased and used, 3,700;price per square yard, $5.10;direct manufacturing labor costs, $8,820;actual hours of input, 900;labor price per hour, $9.80.

1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor.

2. Suppose 6,000 square yards of materials were purchased (at $5.10 per square yard), even though only 3,700 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.

3.Journal entries and T-accounts. Prepare journal entries and post them to T-accounts for all transactions.

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