Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.3 oz. $0.20) $1.26 Direct labor (0.08 hr@$18.00) 1.44 Standard prime cost $2.70 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. C. There are no beginning or ending inventories of direct materials. d. Direct labor: 11,300 hours at $17.30. Required: 1. Compute price and usage variances for direct materials, Materials Price Variance Unfavorable Materials Usage Variance Unfavorable 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance Favorable Labor Efficiency Variance Favorable 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank or enter "O". Record purchase of materials Materials Direct Materials Price Variance Accounts Payable Record usage of materials Work in Process I10 111 ID Direct Materials Usage Variance Materials Record labor variances Work in Process Direct Labor Rate Variance Direct Labor Efficiency Variance Wages Payable