The Matz Corporation, using a standard cost system, showed the following for the year ended VARIANCES December 31, 19X6: ,l45

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Direct materials price variance Direct materials efficiency variance Direct labor price variance. Direct labor efficiency variance. Factory overhead budget variance. Factory overhead production volume (capacity) variance. Debit Credit $3,000 4,000 5,000 $2,000 1,000 1,250 Standard costs per unit of product were 10 pounds at $2 per pound for direct materials and $60 per unit for direct labor and factory overhead. Ending inventories and cost of goods sold were analyzed as follows: Materials inventory (1,000 pounds ($2). $2,000 Work-in-process inventory (500 units): Direct materials (100% complete). $10,000 Direct labor and factory overhead (60% complete) 18,000 28,000 Finished goods inventory (400 units ($80) 32,000 Cost of goods sold (1,800 units $80).. 144,000 Required: a Prepare schedules of variance allocations. Allocate the direct materials price variance based on pounds in the various accounts (including the direct materials efficiency variance account). Allocate the remaining variances based on equivalent units. b Write journal entries for the allocation of the variances.