Carlo Lee Corp. has established the following standard cost per unit: Materials5.5 lb @ $2.20 per lb . . . . . . . . . . . . . . . . . . . . . $12.10 Labor1.8hr @ $10 per hr. . . . . . . . . . . . . . . . . . . . . . . . . . 18.00 Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: 1. Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. 2. Make journal entries to record the labor variances.