After graduation from the Business Accounting program at Algonquin college, you proudly accepted a well paying position as a cost accountant for Serenade Manufacturing located in London, Ontario. The following is the standard card for the company's only product: per Unit Manufacturing Costs Direct materials (metres) Direct labour (DL Hrs) Variable overhead (DL Hrs) Fixed overhead (DL Hrs) Standard cost per unit Standard Qty or Standard Price Standard Cost Hrs or Rate 4.0 $ 4.00 $ 16.00 1.5 $ 10.00 15.00 1.5 $ 3.00 4.50 1.5 $ 7.00 10.50 $ 46.00 22,500 Denominator activity level monthly (DL Hrs) Budgeted Fixed overhead costs monthly $ 157,500 For the past month of February 2022, the company proudly manufactured and sold 18,445 units. Variable and fixed manufacturing overhead costs are applied to products on the basis of direct labour hours. All raw materials are direct materials, there are no indirect materials. Additional actual manufacturing results, provided from the Controller, Emily Palmer, include: $ 4.20 per metre Direct materials purchased (metres) Beginning inventory of direct materials (metres) Ending inventory of direct materials (metres) Direct labour Fixed overhead costs Variable overhead costs Metres or Hours 70,024 $ 22,100 22,000 29,426 $ $ $ 9.75 per hour 153,440 90,000 Ms. Palmer has asked you to determine the following results for February 2022: 1. For direct materials: a. Price and quantity variances Price Variance Quantity Variance b. Journal entries to record activity Journal Entries Dr Accounts Cr To record the purchase of raw materials To record the usage of raw materials in production 2. For direct labour a. Rate and efficiency variances Rate Variance Efficiency Variance b. Journal entry to record labour activity Journal Entry Dr Accounts Cr To record the Direct Labour 3. Variable overhead spending and efficiency variances Spending Variance Efficiency Variance II II 4. Fixed overhead budget and volume variances Budget Variance Volume Variance