2. ABC Company produces engine parts for large motors. The firm uses a standard cost system for production costing and control. The following information is from the standard cost sheet: \begin{tabular}{ll} Direct materials (6 lbs. @\$5.4) & $32.4 \\ Direct labor (1.5 hrs. @\$18) & $27 \end{tabular} The actual operating data for the year are as follows: a. Production of valves totaled 20,600 units. b. A total of 135,400 pounds of direct materials was purchased at $725,744. c. Direct materials requisitioned: 130,000 pounds. d. The company used 30,500 direct labor hours at a hourly rate $19. Required: (1) Determine the direct materials price variance and the direct materials usage variance. (2) Determine the direct labor rate variance and the direct labor efficiency variance. (3) Prepare journal entry to record materials acquisition. (4) Prepare journal entry to record materials requisition. (5) Prepare journal entry to record the use of labor. (6) Prepare the relevant closing entries