Direct Labor and Direct Materials Variances, Journal Entries Samson Company produces paper towels. The company has established the following direct materiais and direct labor standards for one case of paper towels: During the first quarter of the year, 5 amson produced 40,000 cases of paper towels. The company purchased and wsed 160,300 pounds of paper pulp at $0,27 per pound. Actual direct labor used was 80,000 hours at 518.20 per hour, Required: Instructions for parts 1 and 21 if a variance is xero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the direct materiats price and usage variances. 2. Calculate the direct labor rate and efficiency variances, does not require an entry, leave it blank. 1