Dawson Inc. is a privately held furniture manufacturer. For August

2017,

Dawson

had the following standards for one of its products, a wicker chair:

THE STANDARDS PER CHAIR

Direct materials

3 square yards of input at

$5.50

per square yard

Direct manufacturing labor

0.5 hours of input at

$10.50

per hour

For August

2017,

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
		x	Flexible
	Actual costs	Budgeted price	budget costs
Direct materials	$35,340	$34,100	$36,300
Direct manufacturing labor	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

OPTION 1

Option 1. Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date	Accounts	Debit	Credit
1. (a)