Company B uses a standard cost system to control manufacturing cost. All expenditures were on account standards to produce one unit of finished product:

Compute (must show calculations) and indicate whether favorable (f) or unfavorable (u) variance

STANDARD COST SYSTEM: VARIANCES AND ENTRIES: Company B uses a standard cost system to control manufacturing costs. All expenditures were on account. Standards to produce one unit of finished product: Direct materials: 2 lbs. @ $8.00 per Ib. Direct labor: 6 hours at $20.00 per hour Actual results: Actual production: 62,000 units Actual materials purchased: 130,000 lbs. @ $8.20 per lb. Actual materials used: 125,000 lbs Actual direct labor usage: 370,000 hours Actual direct labor costs: $7,585,000 REQUIRED: COMPUTE (must show calculations) and indicate whether favorable (F) or unfavorable (U) variance U F Direct materials price variance $ Direct materials quantity variance: $ UF Direct labor rate (price) variance: $ U F Direct labor efficiency (quantity) var.$ U F CONTINUED: Including the related variances: 1. Journalize the purchase of direct materials on account: DR CR 2. Journalize the usage of direct materials: 3. Journalize the usage of direct labor: 4. Journalize the closing entry assuming that the variances taken together are immaterial