4. ADM Milling manufactures flours and sold to bakeries and other supermarkets. ADM Milling prepares flexible budgets and uses a standard cost system to control manufacturing costs. The standard unit cost of a bag of 45KG Bebe Agua is based on static budget volume of 65,000 bags of 45KG Bebe Agua per month: Direct Materials (.3 @ $0.40 per lb.) .121 Direct Labor (5 mins. @ $0.20 per min.) 1.00 Manufacturing Overhead: Variable (5 mins @ $0.10 per min.) .50 Fixed (5 mins. @ 50.20 per min.) 1.00 1.50 Total cost per unit $2.62 Actual cost and production information for December 2021 follows: a. There were no beginning or ending inventory balances. All expenditures were on account. b. Actual production and sales were 70,000 bags of 45KG Bebe Agua c. Actual direct materials usage was 20,000 lbs. at an actual cost of $0.26 per lb. d. Actual direct labor usage was 210,000 minutes at a total cost of $39.500 e. Actual overhead cost was $9,000 variable and $35,000 fixed. f. Selling and administrative costs were $125,000 Requirements 1. Compute the cost and efficiency variances for direct materials and direct labor. (8 Points) 2. Journalize the purchase and usage of direct materials and the assignment of direct labor, including the related variances. (10 Points)