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DIRECT MATERIAL AND DIRECT LABOR VARIANCES PLAUSIBLE ROOT CAUSE FOR EACH VARIANCE 370 1500 180 1000 1. DM price variance 1. DM efficiency variance 1.DL ate variance 1. DL efficiency variance 2. DM price variance 2.. DM efficiency variance 2.DL ate variance 2. Deficiency variance SET OF JOURNAL ENTRIES for 1 and 2. 500 1500 SAME AS 1. ABOVE SAME AS 1. ABOVE 1. To record the DM prevarance accounts payable control End babice 370 370 1. To record the Metticiency variance 1. To record the DL rate and efficiency wariances. 2. To record the price variance 2. To record the DM efficiency variance MATERIALS AND MANUFACTURING LABOR VARIANCES, STANDARD COSTS Dunn, Inc., is a privately held furniture manufacturer. For August 2018, Dunn had the following standards for one of its products, a wicker chair: Standards per Chair Direct materials 2 square yards of input at $5 per square yard Direct manufacturing labor 0.5 hour of input at $10 per hour The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,000, square yards of input purchased and used, 3,700; price per square yard, $5.10; direct manufacturing labor costs $8,820; actual hours of input, 900, labor price per hour $9.80. REQUIREMENTS: 1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. 2. Suppose 6,000 square yards of materials were purchased (at $5.10 per square yard), even though only 3,700 square yards were used. Suppose further that variances are identified at their most timely control point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. 3. Prepare journal entries for all four variances for requirement 1 and for the direct material variances for requirement 2