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The question has got three requirements and idl Consider the following selected data regarding the...

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The question has got three requirements and idl Consider the following selected data regarding the manufacture of a line of sofas by Freedom Furnishers (FF): Standards per sofa Direct materials 2 square metres of input at $10 per square metre Direct manufacturing Labour 0.5 hours of input at $20 per hour The following data were compiled regarding actual performance Actual output units produced 20.000 sofas Direct Materials purchased and used 37,000 square metres Price per square metre for direct materials $9.00 Direct manufacturing labour costs 5176,400 9,000 hours Actual manufacturing hours Labour price per hour $19.60 Required: (a) Calculate price variance and ethiciency variances for direct materials and identify whether a variance is favourable and unfavourable. Show your working 14 marks) b) Briefly discuss how could Freedom use the variance information for managerial performance evaluation 5 marks) (c) Why it is important that Freedom Furnishers uses price and efficiency variance Information combinedly while evaluating performance of the relevant managers? Briefly dhouss using the variance calculated in requirement (all above as an example, (5 marles, View

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