Dawson, Inc. is a privately held furniture manufacturer. For August 2020. Dawson had the following standards...

   

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Dawson, Inc. is a privately held furniture manufacturer. For August 2020. Dawson had the following standards for one of its products, a wicker chair: (Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1".) (Click the icon to view the costs and variances under the assumptions "option 2".) 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 3 square yards of input at $5.50 per square yard Direct materials Direct manufacturing labor 0.5 hour of input at $10.50 per hour Option 1 For August 2020, Dawson had the following costs and variances for actual production of 2,200 chairs, 6,200 square yards of input purchased and used: Option 1: Actual production Direct materials Direct manufacturing labor Direct materials Direct manufacturing labor Flexible Actual costs Budgeted price budget costs 34,100 $ 36,300 9,660 11,550 35,340 $ 9,844 Actual input $ Price variances 1,240 U 184 U Efficiency variances I $ 2,200 F 1,890 F Dawson, Inc. is a privately held furniture manufacturer. For August 2020. Dawson had the following standards for one of its products, a wicker chair: (Click the icon to view the standards.) (Click the icon to view the costs and variances for actual production "option 1".) (Click the icon to view the costs and variances under the assumptions "option 2".) 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 3 square yards of input at $5.50 per square yard Direct materials Direct manufacturing labor 0.5 hour of input at $10.50 per hour Option 1 For August 2020, Dawson had the following costs and variances for actual production of 2,200 chairs, 6,200 square yards of input purchased and used: Option 1: Actual production Direct materials Direct manufacturing labor Direct materials Direct manufacturing labor Flexible Actual costs Budgeted price budget costs 34,100 $ 36,300 9,660 11,550 35,340 $ 9,844 Actual input $ Price variances 1,240 U 184 U Efficiency variances I $ 2,200 F 1,890 F