Homework: Exercise 5-25* Score: 0 of 10 pts E7-25 (similar to) Davidow, Inc. is

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Homework: Exercise 5-25* Score: 0 of 10 pts E7-25 (similar to) Davidow, Inc. is a privately held furniture manufacturer. For August 2014, Davidow had the following standards for one of its products, a wicker chai: Save 1 of 1 (0 complete) HW Score: 0%, 0 of 10 pts Question Help * Direct materials Direct manufacturing labor The following data were compiled regarding actual performance: actual output units (chairs) produced, 2.400; square yards of input purchased and used, 6,800 Standards per Chair 3 square yards of input at $ 5.90 per square yard 0.5 hour of input at $ 10.20 per hour price per square yard, $6.10, direct manufacturing labor costs, $9,090; actual hours of input, 900labor price per hour, $10.10 Read the requirements Reauirement 1. Show comnutations of nrice and efficienev variances for direct materials and direct manufacturina labor. Give a nlausible exnlanation of whv each

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1 Q H Standard Quantity/Hours 2400*3=7200 2400*0.5=1200 Direct Material Price Variance (SP-AP)*AQ (5.9-6.1)*6800 1360 U Direct Material Quantity Variance (SQ-AQ)*SP (7200-6800)*5.9 2360 F Direct Labor Rate Variance (SR-AR)*AQ (10.20-10.1)*900 90 F Direct Labor Efficiency Variance (SQ-AQ)*SR (1200-900)*10.2 3060 F 2 Actual Cost Actual Input* Budgeterd Price Flexible Budget Cost Purchase 9300*6.1=56730 9300*5.9=54870 Production 6800*5.9=40120 7200*5.9=42480 Price Variance 56730-54870=1860 U Efficiency Variance 40120-42480=2360 F

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