Question Help X E7-31 (similar to) Davidon, Inc. is a privately held fumiture manufacturer. For August 2017. Davidow had the following standards for one of a producte, a wicker char (Click the icon to view the standarda. (Click the icon to view the costs and variences for achal production option 1"} (Click the icon to view the costs and variancas under the assumptions 'aption 2.) Requirement Prepare journal enlries and post their lo T-avourils for the price and efficiency variances listed under the Iwe oplioris. Surmarize how these Journal entries differ from normal-coating entries Option 1 Prepare the joumal entry for the dract materials price variance. (Recordabits first, then credits. Exclude explanations from any joumal entries.) Journal Entry Date Accounts Debit Credit 1. (a) Direct Materials Control Direct Materials Price Varience Accounts Payable Control 0 Option 1 Option 2 2 i Standard Coats and Usage Standards per chair For Augusl 2017, Davidus had the following costs are variances for actual production of 2,000 chairs. 3,700 square yards of input purchased and used: Option 1: Actual production Actual input Direct materials Direct manufacturing labor 2 &quere yards of input at $5.50 per square yard 0.5 hour of input at $10.30 per hour The following variances are under the assumption that 6, 2010) Squane yards of materials were purchased, even though only 3.700 square yards were used. Suppose further that direct materiale 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 jurchases Actual input Flexible Direct materials: Actual costs Budgeted price budget costs Purchasing $ 35,980 S 34,720 Production S 20,720 $ 22,400 Flexible Actual costs Budgeted price budget costs 3 21,460 3 20,720 $ 22,400 9,000 9,785 10,300 Print Dons Direct materiali Dirent manufacturing labar Price Efficiency variances variances 740 U Direct materials Direct manufacturing labar S 1.600 F F 515 F Price 95 U Efficiency variance variance Direct materials $ 1240 U S 1.680 F Print Done Print Don Choose from any list or enter any number in the input fields and then click Check