Chemical, Incorporated, has set the following standards for direct materials and direct labor for each 20-pound bag of Weed-Be-Doom: Per Bag Direct materials: 25 pounds of XF-2000 @ $0.08 per pound = $ 2.00 Direct labor: 0.05 hour @ $32.00 per hour = $ 1.60 The company manufactured 100,000 bags of Weed-Be-Doom in December and used 2,700,000 pounds of XF-2000 and 5,200 direct labor hours. During the month, the company purchased 3,000,000 lbs. of XF-2000 at $0.075 per pound, and incurred a total payroll of $182,000 for direct labor. The company records purchases at standard cost and therefore recognizes material price variances at point of purchase. Required: 1. Compute the price and usage variances for direct materials, and the rate and efficiency variances for direct labor for the month of December. 2. Prepare journal entries to record the preceding events.