27. The Emerson Division of Golding Company produces small kitchen appliances. The company uses a standard costing system for production costing and control. The standard prime costs for its most popular product, an electric stand mixer, are given below: Direct Materials Direct Labor Standard Quantity or Hours ? pounds 48 minutes Standard Price or Rate $8 per pound ? per hour Standard Cost per Unit $32 $20 During the last month, Emerson produced 5,000 units with the following activity recorded: 1) 21,000 pounds of raw materials were purchased at a cost of $7.80 per pound. 2) There were 2,000 pounds of direct materials at the beginning and 4,000 pounds left at the end. 3) $101,400 of actual direct labor costs were incurred at an actual labor rate of $26 per hour. (1) Compute the direct material price and quantity (usage) variances. Indicate if the variances are favorable (F) or unfavorable (U). Show your computation for full credit! [6 points] (2) Compute the direct labor rate and efficiency variances. Indicate whether the variances are favorable (F) or unfavorable (U). Show your computation for full credit! [6 points] (3) For the case above, prepare journal entries for the following [6 points]: (a) The purchase of raw materials on account. (b) The use of direct materials in production. (c) The use of direct labor in production. (d) Closing out of variances