Chemical Inc. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Bag s 2.25 1.80 Direct materials 25 pounds XP-2000 0.09/pound Direct labor: 0.06 hour $30/hour The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2700,000 pounds of XF-2000 and 6,200 direct labor hours. During the month, the firm purchased 3,000,000 pounds of XF-2000 at $0.080 per pound and incurred a total payroll of $217000 for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase. Required: 1. Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor 2. Prepare journal entries to record the preceding events Required 1 Required 2 Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor Direct materials Purchase-price variance Usage variance Direct labor Rate variance Efficiency variance Required 2> Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Purchased 3,000,000 pounds of XF-2000 at $0.080 per pound. Note: Enter debits before credits General Journal Debit Credit Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 7 View transaction ist Journal entry worksheet Issued 2,700,000 pounds of XF-2000 for the production of 100,000 bags of Weed-Be-Doom Note: Enter debits before credits General Journal Debit Credit entry required Prepare journal entries to record the preceding events. (If no entry is required for a transaction/event, select "No journal in the first account field.) 7 View transaction list Journal entry worksheet AB C Direct labor wages for the manufacturing of 100,000 bags of Weed-Be-Doom for 6,200 hours. Note: Enter debits before credits. Debit Credit General Journal