DM & DL variances Green Tee produces 100 percent cotton t-shirts, with the following standard direct material and labor quantities and costs: Direct material 2.0 yards * $3.00 Direct labor 0.7 hour x $7.50 Actual September production and costs for the company to produce 10,000 t-shirts were as follows: Quantity Cost Direct material Purchased 30,000 yards $89,700 Requisitioned into production 20,120 yards 7,940 hours $58,756 Direct labor a. What is the standard quantity of material and the standard labor time for September's production? Standard quantity of material 20,000 yards Standard quantity of labor 7,000 DLHS b. Compute the direct material and direct labor variances. Material price variance $ Material quantity variance $ Labor rate variance Labor efficiency variance $ c. Record the year-end adjusting entry to close the material and labor variances, assuming that they are insignificant. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Debit To dispose of the material variances Account To dispose of the labor variances Credit Debit Credit