4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Labor Rate Variance Labor Efficiency Variance Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank. Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor EZ Tees Corporation produces T-shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): During the year, EZ Tees produced 9,900 T-shirts. The actual fabric purchased was 14,750 yards at $2.76 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 11,010 hours at $19.60 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,900 T-shirts. 2. Compute the total budget variances for direct materials and direct labor. 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank. Price Variance Usage Variance