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Direct Materials and Direct Labor Variances 9-3 Dulce Company produces a popular candy bar called Rico. The candy is produced in Costa Rica and exported to the United States. Recently, the company adopted the fol- lowing standards for one 5-ounce bar of the candy: L03 Direct materials (5.5 oz.$0.04) S0.22 0.13 S0.35 Direct labor (0.05 hr. $2.60) Standard prime cost During the first week of opcration, the company experienced the following actual results: a. Bars produced: 100,000 b. Ounces of direct materials purchased: 570,000 ounces at $O.045 C. d. Direct labor: 5,200 hours at $2.55 are no beginning or ending inventories of direct materials Required: I. Compute price and usage variances for direct materials 2. Compute the rate variance and the efficiency variance for direct labor 3. Prepare the journal entries associated with direct materials and direct labor