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. @ $0.40)	$ 1.20
Labor (2 hrs. @ $12)	24.00
Total prime cost	$25.20

During the first quarter of the year, Jameson produced 55,000 cases of paper towels. The company purchased and used 165,700 pounds of paper pulp at $0.38 per pound. Actual direct labor used was 111,000 hours at $12.20 per hour.

Required:

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

1. Calculate the direct materials price and usage variances.

Materials Price Variance	$fill in the blank 8e3bb1040001f89_1
Materials Usage Variance	$fill in the blank 8e3bb1040001f89_3

2. Calculate the direct labor rate and efficiency variances.

Labor Rate Variance	$fill in the blank 8e3bb1040001f89_5
Labor Efficiency Variance	$fill in the blank 8e3bb1040001f89_7

3. Prepare the journal entries for (1) the direct materials price variance, (2) the direct materials usage variance, and (3) the direct labor variances. If an amount box does not require an entry, leave it blank or enter "0".

1.		fill in the blank 885dde096fa1fd0_2	fill in the blank 885dde096fa1fd0_3
		fill in the blank 885dde096fa1fd0_5	fill in the blank 885dde096fa1fd0_6
		fill in the blank 885dde096fa1fd0_8	fill in the blank 885dde096fa1fd0_9
2.		fill in the blank 885dde096fa1fd0_11	fill in the blank 885dde096fa1fd0_12
		fill in the blank 885dde096fa1fd0_14	fill in the blank 885dde096fa1fd0_15
		fill in the blank 885dde096fa1fd0_17	fill in the blank 885dde096fa1fd0_18
3.		fill in the blank 885dde096fa1fd0_20	fill in the blank 885dde096fa1fd0_21
		fill in the blank 885dde096fa1fd0_23	fill in the blank 885dde096fa1fd0_24
		fill in the blank 885dde096fa1fd0_26	fill in the blank 885dde096fa1fd0_27
		fill in the blank 885dde096fa1fd0_29	fill in the blank 885dde096fa1fd0_30