2. For Direct Labor

Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 3.5 yards $5.50 per yard $19.25 Direct labor $10.40 per hour $2.08 0.2 hours During June, the following activity was recorded for the new product a. Purchasing acquired 8,200 yards of material at a cost of$5.20 per yard. b. Production used 7,100 yards of the material to manufacture 1,800 units of the newproduct. c. Production reported that 785 direct labor-hours were worked on the new product ata costof $9,106. Required: 1. For direct materials a. Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable,"U" for unfavorable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity b. Prepare journal entries to record the purchase of materials and the use of materials in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) view transaction list view general journal Journal Entry Worksheet 1 2 Record the purchase of materials Transaction General Journal Debit Credit Enter debits before credits done clear entry record entry