Deluxe Company uses a standard cost system and reports the following information for $2024$:

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Deluxe Company reported the following variances: $($Click the icon to view the variances$)$

Deluxe produced $1,000$ units of finished product in $2024.$

Read the requirements.

Begin by journalizing the purchase of direct materials on account, including the related variance. $($Prepare a single compound journal entry.$)$

Standards:

$3$ yards of cloth per unit at $$1\mathrm{.}20$ per yard

$2$ direct labor hours per unit at $$12\mathrm{.}50$ per hour

Overhead allocated at $$4\mathrm{.}00$ per direct labor hour

Actual:

$2,400$ yards of cloth were purchased at $$1,25$ per yard

Employees worked $1,100$ hours and were paid $$12\mathrm{.}00$

Actual variable overhead was $$2,100$

Actual fixed overhead was $$4,000$

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Data table

Direct materials cost variance

Direct materials efficiency variance

Direct labor cost variance

Direct labor efficiency variance

Variable overhead cost variance

Variable overhead efficiency variance

Fixed overhead cost variance

Fixed overhead volume variance

Requirements

Record the journal entries for direct materials, direct labor, variable overhead, and fixed overhead, assuming all expenditures were on account and there were no beginning or ending balances in the inventory accounts $($all materials purchased were used in production, and all goods produced were sold$).$ Record the journal entries for the transfer to Finished Goods Inventory and Cost of Goods Sold $($omit the journal entry for Sales Revenue$).$ Record the journal entry to adjust the Manufacturing Overhead account. $($Record debits first, then credits. Select the explanation on the last line of the journal entry table.$)$