The following data were compiled regarding actual performance: actual output uni

The following data were compiled regarding actual performance: actual output units (chairs) produced 2000; square yards of input purchased and used 3700; price per square yard $5.10; direct manufacturing labor costs $8820; actual hours of input 900; labor price per hour $9.80.1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor give a plausible explanation of why each variance occurred.2. Suppose 6000 square yards of materials were purchased (at $5.10 per square yard) even though only. 3700 square yards 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 thisapproach.