Next Question (Click the ico and variances under the assumptions "option 2".) Diva, Inc. is a privately held furniture manufacturer. For August 2020, Diva had the following standards for one of its products, a wicker chair: E: (Click the icon to view the standards.) 2 (Click the icon to view the costs and variances for actual production "option 1".) 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 2 square yards of input at $5.30 per square yard Direct manufacturing labor 0.5 hour of input at $10.40 per hour Option 1 For August 2020, Diva had the following costs and variances for actual production of 2,000 chairs, 3,700 square yards of input purchased and used: Option 1: Actual production Actual input Flexible Actual costs Budgeted price budget costs Direct materials $ 20,350 $ 19,610 $ 21,200 Direct manufacturing labor 9,345 9,256 10,400 Price Efficiency variances variances Direct materials $ 740 U $ 1,590 F Direct manufacturing labor 89 U 1,144 F Option 1. Date Prepare the journal entry for the direct materials price variance. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Accounts Debit Credit 1. (a) Direct Materials Control 38,080 Direct Materials Price Variance 1,360 Accounts Payable Control 39,440 Credit Now prepare the journal entry for direct materials efficiency variance. Journal Entry Date Accounts 1. (b) Work-in-Process Control Direct Materials Efficiency Variance Direct Materials Control Debit 40,320 2,240 38,080 Next, prepare the journal entry for direct manufacturing labor price and efficiency variances. 186 Journal Entry Date Accounts Debit Credit 1. (c) Work-in-Process Control 12,480 Direct Manufacturing Labor Price Variance Direct Manufacturing Labor Efficiency Variance 2,808 Wages Payable Control 9,858 Post the journal entries you prepared to the following T-accounts. (Abbreviation used: Mfg.=Manufacturing) Direct Materials Control Direct Materials Price Variance Direct Materials Efficiency Variance 1. (a) 38,080 1. (b) 38,080 1. (a) 1,360 1. (b)' 2,240 Work-in-Process Control Direct Mfg. Labor Price Variance Direct Mfg. Labor Efficiency Variance 1. (b) 40,320 1. (c) 12,480 1. (c) 186 1. (c) 2,808 Wages Payable Control Accounts Payable Control 1. (c) 9,858 1. (a) 39,440