K (Cli The foll per squa Require Require variance Let's be unit cos Direct mela Tentang ma dracturer. Foi August, Danker had the following standards for one of its products, a wicker chair Required 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labour. Give a plausible explanation of why each variance occurred. 2. Suppose 7,100 square metres of materials were purchased (at $5.20 per square metre), even though only 4,700 square metres 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 this approach. Print Done A - X uare metres of input purcha hour, $10.60. ng labour. Give a plausible e mounts in the formula and cost