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 $12,315$ direct labor

hours. During the month, the firm purchased $3,000,000$ pounds of $xF-2000$ at $$0\mathrm{.}110$ per pound and incurred a total payroll of

$$431,025$ 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.

Complete this question by entering your answers in the tabs below.

Required $1$

Compute the price and usage variances for direct materials and the rate and efficiency variances for direct labor.The firm manufactured $100,000$ bags of Weed$-$Be$-$Doom in December and used $2,700,000$ pounds of XF$2000$ and $12,315$ direct labor hours. During the month, the firm purchased $3,000,000$ pounds of XF$2000$ at $$0\mathrm{.}110$ per pound and incurred a total payroll of $$431,025$ for direct labor. The firm records purchases at standard cost and therefore recognizes the direct materials price variance at point of purchase.Journal entry worksheet

Purchssed $3,000,000$ pounds of $70{}^{-}-2000$ st $$0\mathrm{.}110$ per pound.

Wate: Gnter thelis befare ansits.

Journal entry worksheet

Iwuad $2,700,000$ poonds of $xF-2000$ for the production of $100,000$ bags of

Weed$-$Be$-$Doom.

Mobe: Enter debta bators cretia.

Journal entry worksheet

Direct labor wages for the manulacturing of $100,000$ bags of Weed$-$Be$-$Doom

for $12,315$ hours.

Noba: Emter dabita batare credta.