Chemical Incorporated. has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Direct materials: 25 pounds XF-2000 @ $0.09/pound Direct labor: 0.06 hour $30/hour Per Bag $ 2.25 1.80 The firm manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 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 $217,000 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 quantity variances for direct materials and the rate and efficiency variances for direct labor. 2. Prepare journal entries to record the preceding events. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the price and quantity variances for direct materials and the rate and efficiency variances for direct labor. Direct materials: Price variance Quantity variance Direct labor: Rate variance Efficiency variance