Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.20 oz. @ $0.09) $0.74 Direct labor (0.09 hr. @ $18.00) 1.62 Standard prime cost $2.36 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 1,172,900 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 12,730 hours at $17.30. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance Favorable Materials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance Labor Efficiency Variance 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank. Materials Direct Materials Price Variance Accounts Payable Record purchase of materials Work in Process Direct Materials Usage Variance Materials Record usage of materials Work in Process Direct Labor Rate Variance Direct Labor Efficiency Variance Wages Payable Record labor variances