Davis Consulting has created a stabdard cost card for each job. Standard direct materials include 14 software packages at a cost of $900. per package. Standard direct labor costs per job include 90 hours at $120. per hour. Davis plans on completing 12 jobs during March 2013.

Actual direct material costs for March include 90 software packages at a total cost of $81,450. Actual direct labor costs include 100 hours per job at an average rate of $125. per hour. Davis completed all 12 jobs in March.

1. Calculate the direct material cost and efficiency variances

2. Calculate the direct labor cost and efficiency variances

3. Prepare journal entries to record the use of both materials and labor for the company in March.