29-Price and efficiency variances, journal entries. Chemical, Inc., has set up the following standards per finished output unit for direct materials and direct manufacturing labor. 3. Direct materials: 10 pounds at $3.00 per pound $30.00 per unit 4. Direct manufacturing labor: 0.5 hour at $20.00 per hour $10.00 per unit The number of finished output units budgeted for March 2012 was 10,000, 9,810 units were actually produced. Actual results in March 2015 were: Direct materials 98,073 pounds used 304026.3$ Direct manufacturing labor 4,900 hours $102,900 Assume that there was no beginning inventory of either direct materials or finished units. During the month, materials purchases amounted to 100,000 pounds, at a total cost of $310,000. Price variances are isolated upon purchase. Efficiency variances are isolated at the time of usage. REQUIRED: 1. Compute the March 2015 price and efficiency variances of direct materials and direct manufacturing labor. Comment on these variances. 2. Prepare journal entries to record the variances in requirement 1. 3-Why might Chemical, Inc. calculate materials price variances and materials efficiency variances with reference to different points in time