cturing labor: ck the ican to view the standards.$)$ nber of finished units budgeted for January $2020$ was $\backslash (10,000,9,950\backslash )$ units ware actually produced. ck the lion to viaw ectual data.$)$ purchased amounted to $\backslash (100,000\backslash$mathrm$\{$lb$\}\backslash ).,$ at a total cost of $\backslash (\backslash$$ $540,000\backslash ).$ Input price variances are isolated upon purchase. Input$-$efficiency variances are isolated at the time of usage$-$ Read the requirements. ment $1.$ Compute the January $2020$ price and efficiency variances of direct materials and direct manufacturing labor. gin by calculating the actual input at the budgeted price $($Round your answars to the nearest whole dollar.$)$Budgeied price $\backslash (=\backslash )$ Actual Data Actual results in Jarnary $2020$ were as follows: Direct materials: $\backslash (98,000\backslash$mathrm$\{$lb$\}\backslash ),$ used Direct manufacturing labor: $4,900$ hours $\backslash$$ $159$:$250$ Requirements $1.$ Compute the January $2020$ price and efficiency variantes of direct materials and direct manufacturing labor: $2.$ Prepare journal entries to record the variances in requirement $1.3.$ Comment on the January $2020$ price and efficiency variences of Sullivan Corporation. $4.$ Why might Sullivan calculate direct materials price variances and direct materials efficiency variances with reference to different points in time? The Sullivan Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor:

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

The number of finished units budgeted for January $2020$ was $10,\backslash (000$ ; $9,950\backslash )$ units were actually produced.

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

Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchased amounted to $\backslash (100,000\backslash$mathrm$\{$lb$\}\backslash ).,$ at a total cost of $\backslash (\backslash$$ $540,000\backslash ).$ 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.$)\backslash (=\backslash )$

Requirements

Actual Data

Actual results in January $2020$ were as follows:

Direct materials: $\backslash (98,000\backslash$mathrm$\{$lb$\}\backslash ).$ used

Direct manufacturing labor: $4,900$ hours

$\backslash$$ $159,250$

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

$2.$ Prepare journal entries to record the variances in requirement $1.$

$3.$ Comment on the January $2020$ price and efficiency variances of Sullivan Corporation.

$4.$ Why might Sullivan calculate direct materials price variances and direct materials efficiency variances with reference to different points in time?