Dunn, 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 Chair Direct materials 2 square yards of input at $5 per square yard Direct manufacturing labor 0.5 hour of input at $10 per hour The 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. REQUIREMENTS: 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor.
Dunn, 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 Chair Direct materials 2 square yards of input at $5 per square yard Direct manufacturing labor 0.5 hour of input at $10 per hour The 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. REQUIREMENTS: 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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| Dunn, 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 Chair | |||||||||||||
| Direct materials 2 square yards of input at $5 per square yard | |||||||||||||
| Direct manufacturing labor 0.5 hour of input at $10 per hour | |||||||||||||
| The 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 |
|||||||||||||
| actual hours of input, 900; | |||||||||||||
| labor price per hour, $9.80. | |||||||||||||
| REQUIREMENTS: | |||||||||||||
| 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. |
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