university of southern california Operations And Supply Chain Management Assignment Help - Materials and manufacturing

Question - Materials and manufacturing labor variances, standard costs. Dunn, Inc. is a privately held furniture
manufacturer. For August 2009, Dunn had the following standards for one of its products, a wicker
chair:

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.
1. Show computations of price and efficiency variances for direct materials and direct manufacturing
labor give a plausible explanation of why each variance occurred.
2. Suppose 6,000 square yards of materials were purchased (at $5.10 per square ya ...Read More rd), 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. Compute the price
and efficiency variances under thisapproach. ...Read Less

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