Dawson, Inc. is a privately held furniture manufacturer. For August 2020, Dawson 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".) (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. Standard Costs and Usage Standards per Chair Direct materials 3 square yards of input at $5.50 per square yard Direct manufacturing labor 0.5 hour of input at $10.50 per hour For August 2020, Dawson had the following costs and variances for actual production of 2,200 chairs, 6,200 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs Direct materials Direct manufacturing labor $ 35,340 $ 34,100 $ 36,300 9,844 9,660 11,550 Price Efficiency variances variances Direct materials $ 1,240 U 2,200 F Direct manufacturing labor 184 U 1,890 F The following variances are under the assumption that 8,700 square yards of materials were purchased, even though only 6,200 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: Actual costs Budgeted price budget costs Purchasing $ 49,590 $ 47,850 Production $ 34,100 $ 36,300 Price Efficiency variance variance Direct materials 1,740 U $ 2,200 F Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Date 1. (a) Journal Entry Accounts Debit Credit