Davidow, Inc. is a privately held furniture manufacturer. For August 2020, Davidow had the following standards for one of its products, a wicker chair. Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1") . Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from a Journal Entry Date Accounts Debit Credit 1. (a) Standard Costs and Usage Standards per Chair Direct materials 2 square yards of input at $5.40 per square yard Direct manufacturing labor 0.5 hour of input at $10.90 per hour Option 1 For August 2020, Davidow had the following costs and variances for actual production of 2,300 chairs, 4,300 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs Direct materials $ 24,080 $ 23,220 $ 24,840 Direct manufacturing labor 10,656 10,464 12,535 X Price Efficiency variances variances $ 860 U $ 1,620 F Direct materials Direct manufacturing labor 192 U 2,071 F (Click the icon to view the costs and variances under the assumptions "option 2".) Requirement Prepare journal entries and post them to T-accounts for the price and efficiency variances listed under the two options. Summarize how these journal entries differ from normal-costing entries. Option 2 The following variances are under the assumption that 6,600 square yards of materials were purchased, even though only 4,300 square yards were used. Suppose further that direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department Option 2: Increase in purchases Actual input Flexible Direct materials: Purchasing Production Actual costs Budgeted price budget costs 36,960 $ 35,640 $ 23,220 $ 24,840 Price Efficiency variance variance 1,320 U 1,620 F Direct materials Davidow, Inc. is a privately held furniture manufacturer. For August 2020, Davidow had the following standards for one of its products, a wicker chair. Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1") . Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from a Journal Entry Date Accounts Debit Credit 1. (a) Standard Costs and Usage Standards per Chair Direct materials 2 square yards of input at $5.40 per square yard Direct manufacturing labor 0.5 hour of input at $10.90 per hour Option 1 For August 2020, Davidow had the following costs and variances for actual production of 2,300 chairs, 4,300 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs Direct materials $ 24,080 $ 23,220 $ 24,840 Direct manufacturing labor 10,656 10,464 12,535 X Price Efficiency variances variances $ 860 U $ 1,620 F Direct materials Direct manufacturing labor 192 U 2,071 F (Click the icon to view the costs and variances under the assumptions "option 2".) Requirement Prepare journal entries and post them to T-accounts for the price and efficiency variances listed under the two options. Summarize how these journal entries differ from normal-costing entries. Option 2 The following variances are under the assumption that 6,600 square yards of materials were purchased, even though only 4,300 square yards were used. Suppose further that direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department Option 2: Increase in purchases Actual input Flexible Direct materials: Purchasing Production Actual costs Budgeted price budget costs 36,960 $ 35,640 $ 23,220 $ 24,840 Price Efficiency variance variance 1,320 U 1,620 F Direct materials