Institute Corn Hole is a small business that Colin Morris 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 Institute Corn hole maintains two departments: contstruction and painting. In the construction department, the games require wood and labor. Institute Corn Hole has some employees who have been with the company for a very long time and others who are new and inexperienced. (Click the icon to view more information.) Read the requirements 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) or unfavorable (U). Begin by calculating the price and efficiency variances for the wood. Price variance Efficiency variance More Info Institute Corn Hole uses standard costing for the game sets. Colin expects that a typical set should take 4 hours of labor in the construction department, and the standard wage rate is $10.00 per hour. An average set uses 24 square feet of wood, allowing for a certain amount of scrap. Because of the nature of the wood, workers must work around the flaws in the materials. Colin shops around for good deals and expects to pay $3.80 per square foot. Colin does not store inventory, and buys the wood as he receives an order. For the month of September, Colin's workers produced 55 corn hole sets using 230 hours and 1,850 square feet of wood. Colin bought wood for $6,800 (and used the entire quantity), and incurred labor costs of $2,135. 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. Record the journal entries for the variances incurred. 3. Discuss logical explanations for the combination of variances that the construction department of Institute Corn Hole experienced