The Yates Corporation manufactures lamps. The number of finished units budgeted for January 2012 was 9,980, 9,900 units were actually produced.

Assume that there was no beginning inventory of either direct materials or finished units (hiring the month materials purchases amounted to 99,800 lbs at a total cost of 533,930 Input price variances are isolated upon purchase Input-efficiency variances are isolated at the time of usage.

Requirements

1. Compute the Jewry 2012 price and efficiency variances of direct materials and direct manufacturing labor

2. Prepare journal entries to record the variances in requirement 1

It has set up the following standards per finished unit for direct materials and direct manufacturing factor.

Direct materials: 10 lbs. at $5.20 per lb. ........................................ $52.00

Direct manufacturing labor. 0.5 hour at $30 per hour ................. 15.00

Actual results in January 2012 were:

Direct materials: 98,000 lbs. used

Direct manufacturing labor. 4,600 hours .......................... $146,050