Chemical Incorporated. has set the following standards for direct materials and direct labor for each $20-$pound bag of Weed$-$Be$-$Doom:

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\mathrm{.}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:

Compute the price and quantity variances for direct materials and the rate and efficiency variances for direct labor.

Prepare journal entries to record the preceding events.

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Required $1$

Compute the price and quantity variances for direct materials and the rate and efficiency variances for direct labor.