Chic Design is a manufacturer of large flower pots for urban settings. The company has these standards (Click the icon to view the standards.) Last month, the company reported the following actual results for the production of 1,500 flower pots (Click the icon to view the actual results.) (Click the icon to view related variances) Assume the company uses a standard cost accounting system Date Data table Accounts Direct materials (resin).. Direct labor....... Standard variable manufacturing overhead rate..... Budgeted fixed manufacturing overhead Standard fixed MOH rate.……….. Requirement 1. Record Watermate's direct material and direct labor journal entries (Record debits first, then credits. Exclude explanations from any journal entries. Abbreviations used: DM Direct materials, DL- Direct labor) Let's start by recording the entry for the purchase of raw materials. Journal Entry Debit Credit 12 pounds per pot at a cost of $5.00 per pound 20 hours at a cost of $23.00 per hour $4.00 per direct labor hour $24.200 $7.00 per direct labor hour (DLH) X Data table Direct materials price variance Direct materials quantity variance Direct labor rate variance Direct labor efficiency variance Variable overhead rate variance Variable overhead efficiency variance Fixed overhead budget variance Fixed overhead volume variance $ 11,420 U $2,700 U $8.640 F $16.560 U Requirements $1.296 U $2,880 U $200 F $1.000 F 1. 2. 3. Record Watermate's direct material and direct labor journall entries. Record Watermate's journal entries for manufacturing overhead, including the entry that records the overhead variances and closes the Variable and Fixed Manufacturing Overhead account Record the journal entries for the completion and sale of 1,800 flower pots, assuming Chic Design sold (on account) all of the flower pots at a sales price of $540 each. (There were no beginning or ending inventories) Data table Direct materials Purchased 22,840 pounds at a cost of $5.50 per pound used 22,140 pounds to produce 1,800 pots Worked 24 hours per flower pot (4.320 total DLH) at a Direct labor....... cost of $21.00 per hour Actual variable manufacturing overhead.......... Actual fixed manufacturing overhead $24.000 Standard fixed manufacturing overhead allocated based on actual production. $4.30 per direct labor hour for total actual variable manufacturing overhead of $18.576 $25,200