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The following data were compiled regarding actual

performance?:

CoursHeroTranscribedText: Dwyer, Inc. is a privately held furniture manufacturer. For August 2014. Dwyer had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials 3 square yards of input at $ 5.70 per square yard 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, 2,600; square yards of input purchased and used, 7,500; price per square yard, $5.80; direct manufacturing labor costs, $9,888; actual hours of input, 960; labor price per hour, $10.30. Read the requirements Requirement 1 Requirements X uring labor. Give a plausible explanation of why each varian Let's begin by d mounts in the formula and calculate the cost 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance cost occurred. Direct materials 2. Suppose 10,000 square yards of materials were purchased (at $5.80 per square yard), even though only 7,500 square yards were used. Suppose further Next we will cald 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. Cost Direct materials Compute the price and efficiency variances under this approach. Direct manufact Determine the fo Print DoneRequirement 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 Actual input Budgeted price Cost Direct materials Direct manufacturing labor X Determine the formula and calculate the costs for the flexible budget. Flexible budget cost Direct materials Direct manufacturing labor X Now compute the price and efficiency variances for direct materials and direct manufacturing labor. Label each variance as favorable (F) or unfavorable (U)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 Now give a plausible explanation of why each variance occurred. Begin with the direct material variances The materials price variance: There was an unexpected in materials price per square yard due to competition The materials efficiency variance: The production manager may have employed workers or the budgeted materials standards were set too The labor price variance: in labor rates due to a The labor efficiency variance: efficient workers being employed or the use of quality materials

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