Basic Variance Analysis, Revision of Standards, 9-16 Journal Entries L01, L02, L03, L04 Nosemer Company produces engine parts for large motors. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve), is as follows Direct materials (5 lbs. $4.00) Direct labor (1.4 hrs.$10.50) Variable overhead (1.4 hrs. $6.00) Fixed overhead (1.4 hrs.S3.00) S20.00 14.70 8.40 4.20 S47.30 Standard unit cost During the year, Nosemer experienced the following activity relative to the produc- tion of valves: a. Production of valves totaled 25,000 units b. A total of 130,000 pounds of direct materials was purchased at $3.70 per pouno c. There were 10,000 pounds of direct materials in beginning inventory (carried at $4 per pound). There was no ending inventory