$7-42$ Direct materials and manufacturing labor variances, journal entries. Varsity Corn Hole is a small business that Manny Mercado developed while in college. He began building wooden corn hole game sets for friends, hand painted with college colors and logos$.$ As demand grew, he hired some workers and began to manage the operation. Varsity Corn Hole maintains two departments: construction and painting. In the construction department, workers use wood to make the game sets. Varsity Corn Hole has some employees who have been with the company for a very long time and others who are new and inexperienced. Because of the nature of the wood, workers must work around flaws in the materials. Manny does not

store inventory, and buys the wood as he receives an order.

Actual and standard data for the construction department for September $2020$ are shown below$($in picture$)$:

$1.$ For the construction department, calculate the price and efficiency variances for the wood and the price and efficiency variances for direct manufacturing labor.

$2.$ ecord the journal entries for the variances incurred.

$3.$ Discuss logical explanations for the combination of variances that the construction department of Varsity Corn Hole experienced.