B. Howard Company has established the following standards: Direct materials: 2.0 pounds at $4.10 Direct labor: 1.5 hours at $7 per hour Additional information was extracted from the accounting records: Actual production: 32,000 completed units Direct materials purchased: 70,000 pounds at $3.82, or $267.400 Direct materials consumed: 65,000 pounds Actual labor incurred: 51,000 hours at $6.30, or $321,300 Direct-labor rate variance: $35,700 favorable Direct-labor efficiency variance: $21,000 unfavorable Assume that the company computes variances at the earliest point in time. Required: a. What is the amount of Direct Material Purchase Price Variance? Standard material quantity =64000 = 2000 Standard priee pestnit=4.1 Actuat yly purchased 70000 Quantity used = 65000 Actual price = 3.82 70000/4.1-3.82219600 favorable material price variance Material escalance 4100 unfavorable 4.164000-65000) b. Prepare the journal entry to record the usage of direct materials. WIP ---------- 2063009 Nat. Use Val. 4100 Raw Mat use variances c. Prepare the journal entry to record the incurrence of direct labor costs