PLEASE ANSWER THE FOLLOWING QUESTONS!!

DATA SET
Dunn, Inc., is a privately held furniture manufacturer. For August 2022, Dunn had the following standards for one of its products, a wicker chair:
Standards per Chair
Direct materials 2 square yards of input at $5 per square yard
Direct manufacturing labor 0.5 hour of input at $10 per hour
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 rate per hour, $9.80

REQUIRED:

1. Show all computations of price and efficiency variances for direct materials and direct manufacturing labor below.

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.

**INPUT A PLAUSIBLE ROOT CAUSE FOR EACH VARIANCE ALONG WITH THE NUMERICAL ANSWER. (*An example of a PLAUSIBLE ROOT CAUSE for an Unfavorable Direct Material price variance is the purchase of higher quality material for the period. Note any interrelationship among these variances.)

1. DM price variance

? (NUMERICAL ANSWER )

(ROOT CAUSE?)

1. DM efficiency variance

? (NUMERICAL ANSWER )

(ROOT CAUSE ?)

1. DL rate variance

? (NUMERICAL ANSWER )

(ROOT CAUSE ? )

1. DL efficiency variance

? (NUMERICAL ANSWER )

(ROOT CAUSE ? )

2. DM price variance

? (NUMERICAL ANSWER ) (ROOT CAUSE ?)

2.. DM efficiency variance

? (NUMERICAL ANSWER ) (ROOT CAUSE ?)

2. DL rate variance

? (NUMERICAL ANSWER )

(ROOT CAUSE ?)

2. DL efficiency variance

? (NUMERICAL ANSWER ) (ROOT CAUSE?)

2.

You are the cost analyst for Dunn, Inc.
What variances would you investigate from your direct variance analysis for August 2022?	Why?