The Elegant Wooden Works (Elegant) makes and sells wooden furniture. The company uses standard costing. The costing system includes two direct-cost categories: direct materials and direct labor. You are given the following data for December 2018 relating to the production of one of the company wardrobe products. Standards per product: Direct materials Direct labor Actual data for December: Output unit produced 15 square meter of input at $25 per square meter 4 hour of input at $35 per hour 200 Square meters of input purchased 2,600 and used Price per square meter 25.5 Direct labor costs $28,470 Actual hours of input 780 There was no beginning inventory of either direct materials or finished units. Required: (a) Calculate the price and efficiency variances for direct materials and direct labor of Elegant. Indicate whether each of the variances is favorable (F) or unfavorable (U). (b) Prepare journal entries to record the direct material and direct labor cost transactions in December 2018, showing the variances in requirement (a). Narrative is not required. (c) Suggest three possible connections between the price and efficiency variances