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 (8.2 oz. @ $0.09) $0.738 Direct labor (0.07 hr. @ $18.00) 1.26 Standard prime cost $1.998 During the first week of operation, the company experienced the following actual results: a. Bars produced: 78,000. b. Ounces of direct materials purchased: 640,000 ounces at $0.084 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 5,510 hours at $18. Required: 1. Compute price and usage variances for direct materials. Materials Price Variance Favorable Materials Usage Variance Unfavorable 2. Compute the rate variance and the efficiency variance for direct labor. DU II Labor Rate Variance No Change Labor Efficiency Variance Unfavorable 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank. If an amount is zero, enter "O". Record purchase of materials Materials Direct Materials Price Variance Accounts Payable Record usage of materials Work in Process Direct Materials Usage Variance Materials Record labor variances Work in Process Direct Labor Rate Variance Direct Labor Efficiency Variance Wages Payable