3. Rhodes Corporation manufactures a product with the following standard costs: (85 points) Direct materials (20 yards @ $1.85 per yard) $ 37.00 Direct labor (4 hours @ $12.00 per hour) 48.00 Variable factory overhead (4 hours @ $5.40 per hour) 21.60 Fixed factory overhead (4 hours @ $3.60 per hour) 14.40 Total standard cost per unit of output $121.00 Standards are based on normal monthly production involving 2,000 direct labor hours (500 unit of output). 22.936 The following information pertains to the month of July: Direct materials purchased (16,000 $29,120 yards @ $1.82 per yard) Direct materials used (9,400 yards) Direct labor (1,880 hours @ $12.20 per hour) Actual factory overhead E 16,850 Actual production in July: 470 units a. Compute the following variances for the month of July, indicating whether each variance is favorable or unfavorable: (40 points) IK1) Materials purchase price variance (2) Materials quantity variance ||3) Labor rate variance (4) Labor efficiency variance b. Based upon your answers in a prepare journal entries to record: (45 points) The purchase of materials (The materials price variance is recorded at the time of purchase) 1K2) The use of materials in production L 3) The use of labor in production