Direct Labor and Direct Materials Variances, Journal Entries

Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels:

Paper pulp $(3$ lbs$.$ @ $$1\mathrm{.}20$

$$0\mathrm{.}40$

Labor hrs$.$ @ $$12$ Total prime cost $$25\mathrm{.}20$

Required:

Instructions for parts $1$ and $2$: If a variance is zero, enter $"0"$ and select "Not applicable" from the drop down box.

Calculate the direct materials price and usage variances.

Materials Price Variance $

Materials Usage Variance $

Calculate the direct labor rate and efficiency variances.

Labor Rate Variance $

Labor Efficiency Variance $

$1$

$7$