Direct Labor and Direct Materials Variances, Journal Entries lameson Company produces paper towels. The company has established the following arect manenials and direct labor standards for one case of paper towes Paper pulp (3 Ibs e s0.40) 1.20 24.00 $25.20 Labor (2 hrs. $12) Total prime cost Duning the first quarter of the year, Jameson produced 55,000 cases of paper towets. The compeny purchased and used 165,700 pounds of paper pulp at 50.30 per pound. Actual deect labor ssed was 13,000 hours at $12.10 per hour Requiredi 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 Favorable Maternials Price Variance Materials Usage vanance .Calculate the direct labor rate and efficiency varlances Labor Rate Variance Labor ETIcency Variance Unfavorable v Unfavorable v Ufavorable w 3. mpare the pounal entries for (1) ne direct materials p ce vanance, (2) the are t materials usage variance, and C3) the direct iat or vara ces, r ester o amount box toes not requan, an entry, inn et tark Materials Y Direct Materials Price Varlance Motenals Usage varlance . Calculate the direct labor rate and efficency viances Labor Rate Vaniance Labor Efficency vanance Unfavorable V Unfavorable J. Prepare the yournal entnes for (1) the direct materials price vaniance, (2) the drect matenals usage enter o and (3) the drest labor varlances. It an amount box does not require an enntry, leave it blank or Materials Y Direct Materials Price Variane ccots Payable e Materials Usage Variance Unage Varlance Materials Direst Labor Effk Direvt Labor Rate Variance Was Payable