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: Overhead rates are computed using practical volume, which is 54,000 units. The actual results for the year are as follows: a. Units produced: 53,000 b. Direct materials purchased: 265,000 pounds $2.50 per pound c. Direct materials used: 270,300 pounds d. Direct labor: 40,100 hours at $17.95 per hour e. Fixed overhead: $161,600 f. Variable overhead: $122,100 Required: 1. Compute price and usage variances for direct materials. 2. Compute the direct labor rate and labor efficiency variances. 3. Compute the fixed overhead spending and volume variances. Spending Variance Volume Veriance 4. Compute the variable overhead spending and efficiency variances. Spending Variance Efficiency Variance 5. Prepare journal entries for the foliowing: a. The purchase of direct materials b. The issuance of direct materials to production (Work-in Process) c. The addibion of direct labor to Work in Process d. The addition of overtiesd to Work in Process e. The incurrence of sctual overhesd costs If an amount box does not require an entry, leave it blank. Fepere joumal entries for the closing out of variances to Cost of Goods Sold, If an ameunt bex does net require an entry, leave it blank. Fint, clate firect materials and dicect labor variances: Inting fintion Fomath was Thind, dose the overhead variancet! Notel Close the variances with a debit balance first