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:

Actual
Game sets produced	80
Direct materials used in production	1,800 sq. ft. of wood
Actual direct material cost	$7,020
Actual direct manufacturing labor-hours	300
Actual direct manufacturing labor cost	$4,650

Standards
Purchase price of direct materials	$4.00 per sq. ft. of wood
Direct materials per game set	20 sq. ft. of wood
Wage rate in construction department	$15.00 per hour
Construction department direct labor hours per game set	4 hours

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. Requirement 1. For the construction department, calculate the price and efficiency variances for the wood and the price and efficiency variances for direct manufacturing labor. Label each variance as favorable (F) unfavorable (U). Begin by calculating the price and efficiency variances for the wood. Price variance Efficiency variance Calculate the price and efficiency variances for direct manufacturing labor Price variance Efficiency variance Requirement 2: Requirement 2. Record the journal entries for the variances incurred. (Record debits first, then credits. Exclude explanations from any journal entries.) Prepare the journal entry for the direct materials price variance. Journal Entry Accounts Date Debit Credit Next prepare the journal entry for direct materials efficiency variance. Journal Entry Date Accounts Debit Credit Now prepare the journal entry for direct manufacturing labor price and efficiency variances Journal Entry Date Accounts Debit Credit Only requirement 1 and requirement 2 need an