Please explain and answer all the four requirements. Thank you. $($Click the icon to view the standards.$)$

The number of finished units budgeted for January $2020$ was $10,040$;$9,950$ units were

actually produced.

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

of $$517,060.$ 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.$)$

Direct materials $($purchases$)$

Direct materials $($usage$)$

Direct manufacturing labor

Next determine the formula and calculate the costs for the flexible budget.

Standards

Direct materials: $10lb.$ at $$5\mathrm{.}00$ per lb$.$ $$50\mathrm{.}00$

Direct manufacturing labor: $0\mathrm{.}5$ hour at

$$30$ per hour

$15\mathrm{.}00$

Actual Data

Actual results in January $2020$ were as

follows:

Direct materials: $98,500lb.$

used

Direct manufacturing labor:

$4,800$ hours

$$152,400$

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 Madison Corporation.

Why might Madison calculate direct materials price

variances and direct materials efficiency variances with

reference to different points in time?