Direct material and direct labour variances; job costing:journal entries: manufacturer Business Wear Fashions manufactures one type of women's jacket, produced in jobs to ll each customer order. These jackets are supplied to various department stores, and Business Wear sews the label of each store onto the jackets. During November, Business Wear worked on three orders. The job cost records disclose the following data: Job no. No. jackets Total material used (metres) Total hours worked AB 2 000 8 200 5 960 CD 3 400 13 000 10 260 MN 2 400 10 100 5 780 The following additional information is available: I Business Wear purchased 90 000 metres of material during November at a cost of $990 000. I Direct labour during November amounted to $660 000. According to payroll records, production employees were paid $30 per hour. I There was no work in process on 1 November. During November, jobs AB and CD were completed. All material was issued forjob MN, which was 80 per cent complete as to direct labour. I The standard costs for a jacket are as follows: Direct material 4 metres @ $10.00 $ 40.00 Direct labour 3 hours @ $29.00 87.00 Manufacturing overhead 3 hours @ $18.00 54.00 Standard cost per jacket $181.00