$($Click the icon to view the standards.$)$

The number of finished units budgeted for January $2020$was $9,7109,650$units were actually

produced.

$($Click the icon to view actual data.$)$

of $$495,210.$ Input price variances are isolated upon purchase. Input$-$efficiency

variances are isolated at the time of usage.

Read the requirements.

Requirement $1.$ Compute the January $2020$ price and efficiency variances of direct materials and direct manufacturing labor.

Let's begin by calculating the actual input at the budgeted price. $($Round your answers to the nearest whole dollar.$)$

Standards

Actual Data

Actual results in January $2020$ were as follows:

Direct materials: $95,000lb.$ used

Direct manufacturing labor: $4,700$ hours

$$148,050$

Requirements

Compute the January $2020$ price and efficiency variances of direct materials

and direct manufacturing labor.

Prepare journal entries to record the variances in requirement $1.$

Comment on the January $2020$ price and efficiency variances of Wayne

Corporation.

Why might Wayne calculate direct materials price variances and direct

materials efficiency variances with reference to different points in time?