Direct materials cost variance	$115	U
Direct materials efficiency variance	840	F
Direct labor cost variance	700	F
Direct labor efficiency variance	6,450	F
Variable overhead cost variance	1,000	U
Variable overhead efficiency variance	1,000	F
Fixed overhead cost variance	700	U
Fixed overhead volume variance	2,600	F

Standards:

3 yards of cloth per unit at $1.20 per yard

2 direct labor hours per unit at $10.75 per hour

Overhead allocated at $5.00 per direct labor hour

Actual:

2,300 yards of cloth were purchased at $1.25 per yard

Employees worked 1,400 hours and were paid $10.25 per hour

Actual variable overhead was $1,600

Actual fixed overhead was $6,500

Now, journalize the usage of direct materials, including the related variance. (Prepare a single compound journal entry.)

Date			Accounts and Explanation	Debit	Credit
			Work-in-Process Inventory
			Direct Materials Efficiency Variance
			Raw Materials Inventory
			Used direct materials.