Boat-on-water uses a standard cost system for materials and labor in producing small fishing boats. Production requires fiberglass, paint and a purchased trim package as well as direct as follows:

Standard Costs for Variable Costs
1,000 pounds of fiberglass @ $2.00 per pound	$2,000
40 hours of labor @ $25 per hour	1,000
40 hours of labor @ $40 per direct labor hour	1,600

The following actual data related to the production of 100 boats was recorded in January

Materials Purchased on Account

Fiberglass 800,000 pounds @$1.83 per pound

Materials Used

Fiberglass 980,000 pounds

Direct Labor Used

3,900 hours @ $23.50 per hour

Variable Manufacturing Overhead

$175,000 total Variable Manufacturing Overhead

REQUIRED:

• Determine the direct materials price and efficiency variances for Fiberglass.
• Prepare the journal entries for fiberglass
• Determine the direct labor price and efficiency variances
• Prepare the direct labor journal entries
• Determine the direct labor price and efficiency variances if direct labor is fixed and we made 110 boats.