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 $13,325$ direct

labor hours. During the month, the firm purchased $3,000,000$ pounds of XF$-2000$ at $$0\mathrm{.}115$ per pound and incurred a total payroll of

$$466,375$ 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 usage variances for direct materials and the rate and efficiency variances for direct labor.

Prepare journal entries to record the preceding events.