Escrevem Products produces instructional aids. Among the company’s products are

“white boards,” which use colored markers instead of chalk. They are particularly popular for conference rooms in educational institutions and executive offices of large corporations. The standard costs of materials and labor for this product follow: lop5 12 lb @ $8.25 4 hr @ $9.65 Direct materials Direct labor During the first month of the year, 3,200 boards were produced. Information concerning actual costs and usage of materials and labor follows:

38,000 Ib @ $8.35 37,500 lb 12,520 hr; total cost: $122,696 Materials purchased Materials used Direct labor Required:

1. Compute the materials price and usage variances.

2. Compute the labor rate and efficiency variances.

3. Prepare journal entries for all activity relating to materials and labor for the month.