Hope Company uses a standard cost system. The company estimated that the cost of direct materials purchased would be $7,600. However, the actual cost of purchasing the quantity estimated was

$7,800. Direct materials of $3,900 were requisitioned from inventory; $200 worth of direct materials, in excess of the standard allowed, was requisitioned. The standard direct labor hours allowed for the company were 5,300 hours. The actual direct labor hours worked were 5,400. The direct labor standard rate was $5.75, and the actual rate was $5.90. mki5 Required:

Prepare the journal entries to record the above transactions. Isolate the direct materials price variance at the time of purchase.