Hi,

Could you please explain to me step by step the attached exercise?

materials and Manfred-trim Labor Variances Consider the following selected data regarding the manufacture of a line of upholstered chairs: A Direct materials 2 square yards of input at $10 per square yard Direct menu oc'rur'i labor 0.5 houro in urot 20 er hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 20,000; square yards of input purchased and used, 31000; price per square yard, $10.20; direct manufacturing labor costs, $1T6,400; actual hours of input, 9,000; labor price per hour, $19.60. Required: 1. Show your computations of spending and efficiency variances for direct materials. Give a plausible explanation of why the variances occurred. Materials spending variance: -. Materials efciency variance: g 2. Show your computations of price and efciency variances for direct materials. Give a plausible explanation of why the variances occurred. Direct labor spending variance: \"- Direct labor efciency variance: \"9