Assume Drake Consulting has created a standard cost card for each job. Standard direct materials per job include 14 software packages at a cost of $950 per package. Standard direct labor costs per job include 100 hours at $150 per hour. Drake plans on completing 11 jobs during March 2018. Actual direct materials costs for March included 85 software packages at a total cost of $82,875. Actual direct labor costs included 115 hours per job at an average rate of $151 per hour. Drake completed all 11 jobs in March. Requirement 1. Calculate direct materials cost and efficiency variances. Select the formula to calculate direct materials cost and efficiency variances, then enter the variance amounts. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label each variance as favorable (F) or unfavorable (U).) Variance Direct materials cost variance Formula (AC-SC) XAQ (AQ - SQ) x SC U OR F? U OR F? Direct materials efficiency variance Requirement 2. Calculate direct labor cost and efficiency variances. Select the formula to calculate direct labor cost and efficiency variances, then enter the variance amounts. (Abbreviations used: AC = actual cost; AQ = actual quantity; FOH = fixed overhead; SC = standard cost; SQ = standard quantity. Label each variance as favorable (F) or unfavorable (U).) Variance Direct labor cost variance Direct labor efficiency variance Formula (AC - SC) XAQ (AQ - SQ)X SC U OR F? U OR F? Requirement 3. Prepare journal entries to record the use of both materials and labor for March for the company. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing the usage of direct materials, including the related variance. (Prepare a single compound journal entry.) Date Accounts and Explanation Debit Credit Mar 31 Work-in-Process Inventory Direct Materials Efficiency Variance Raw Materials Inventory Journalize the assignment of direct labor costs, including the related variances. (Prepare a single compound journal entry.) Date Debit Credit Mar. 31 Accounts and Explanation Work-in-Process Inventory Direct Labor Cost Variance Direct Labor Efficiency Variance Wages Payable Direct labor costs incurred