Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Rand Company produces dry fertilizer. At the beginning of the year, Rand had the following standard cost sheet: Direct materials (8 lbs. @ $1.30) $10.40 Direct labor (0.2 hr. @ $18.00) 3.60 Fixed overhead (0.2 @ $3.00) 0.60 Variable overhead (0.2 hr. @ $1.70) 0.34 $14.94 Standard cost per unit Overhead rates are computed using practical volume, which is 50,000 units. The actual results for the year are as follows: a. Units produced: 51,000 b. Direct materials purchased: 408,000 pounds at $1.32 per pound c. Direct materials used: 406,800 pounds d. Direct labor: 10,500 hours at $17.95 per hour e. Fixed overhead: $30,680 f. Variable overhead: $18,000 Required: Note: Enter all variances as positive amounts. 1. Compute price and usage variances for direct materials. MPV $ Unfavorable MUV S Favorable 2. Compute the direct labor rate and labor efficiency variances. Labor Rate Variance Labor Efficiency Variance Favorable Unfavorable 3. Compute the fixed overhead spending and volume variances. Spending Variance Volume Variance Unfavorable Favorable 4. Compute the variable overhead spending and efficiency variances. Spending Variance. Unfavorable