Salisbury, Inc. is a privately held furniture manufacturer.

For August, Salisbury had the following

standards for one of its products, a wicker chair: DM, 2 square yards of input at $5 per square yard; DL, .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 labor costs,
$8,820; actual hours of input, 900; labor price per hour, $9.80.

Compute price, quantity, and flexible budget variances for direct materials.
Salisbury, Inc. is a privately held furniture manufacturer. For August, Salisbury had the following
standards for one of its products, a wicker chair: DM, 2 square yards of input at $5 per square yard; DL, .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 labor costs,
$8,820; actual hours of input, 900; labor price per hour, $9.80.

Compute rate, efficiency, and flexible budget variances for direct labor.
Materials Purchased = Materials Used
Salisbury, Inc. is a privately held furniture manufacturer. For August, Salisbury
had the following standards for one of its products, a wicker chair: DM, 2 square
yards of input at $5 per square yard; DL, 1/2 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, 6000 and used,
3,700; price per square yard, $5.10; direct labor costs, $8,820; actual hours of
input, 900; labor price per hour, $9.80.

Compute price and quantity variances for direct materials.