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The Wayne Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labour. (Click the icon to view the standards.) The number of finished units budgeted for January was 9,950; 9,900 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 99,500 kg, at a total cost of $527,350. Input price variances are isolated upon purchase. Input-efficiency variances are isolated at the time of usage. Required - X Standards Requirement 1. Compute the January price and efficiency variances of direct materials and direct manufacturing labour. Let's begin by calculating the actual input at the budgeted price. (Round your answers to the nearest whole dollar.) Direct materials: 10 kg. at $5.10 per kg. $ 51.00 Actual input X Budgeted price = Cost Direct manufacturing labour. 0.5 hour at $31 per hour 15.50 Direct materials (purchases) Direct materials (usage) Direct manufacturing labour Print Done Next, determine the formula and calculate the costs for the flexible budget. Flexible budget cost Direct materials = Direct manufacturing labour X Actual Data Now, compute the price and efficiency variances for direct materials and direct manufacturing labour. Label each variance as favourable (F) or unfavourable (U). Price Efficiency Actual results in January were as follows: variances variances Direct materials: 97,500 kg. used Direct materials Direct manufacturing labour: 4,900 hours $ 160,475 Direct manufacturing labour Requirement 2. Prepare joumal entries to record the variances in requirement 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Print Done Journal Entry Date Accounts Debit Credit Next, prepare the journal entry for direct materials efficiency variance.\f

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