DM & DL variances; journal entries In July, Zinger Corp. purchased 28,000 gallons of Numerol for $85,400 to use in the production of product #43MR7. During July, Zinger Corp. manufactured 5,460 units of product #43MR7. The following information is available about standard and actual quantities and costs: Standard for One Unit Direct material 4.8 gallons @ $3 per gallon Direct labor 20 minutes @ $9 per DLH Actual Usage for July Direct material 25,690 gallons Direct labor 1,806 DLHS @ $9.02 per DLH a. Compute the material purchase price variance and the material quantity variance. Note: Do not use a negative sign with your answers. Material price variance $ Material quantity variance $ 1400 1554 Unfavorable Favorable b. Compute the labor rate, labor efficiency, and total labor variance. Note: Do not use a negative sign with your answers. Note: Round your final answer to the nearest whole dollar. Labor rate variance $ 36 Unfavorable Labor efficiency variance $ 126 Favorable Total labor variance $ 90 Favorable c. Prepare the journal entries for the material and labor variances. Note: Round amounts to the nearest whole dollar. Note: Record any multiple debits or any multiple credits in alphabetical order by account name. Account Raw Material Inventory Debit 84000 x Credit 0 Material Price Variance x 1400 x 0 Accounts Payable 0 0 x To record material price variance Work in Process Inventory Material Quantity Variance Raw Material Inventory " To record material quantity variance Work in Process Inventory Labor Rate Variance: Labor Efficiency Variance Wages Payable To record labor variances " " 4 0 x 0 0 0 x 0 0 x x 36 0 x 36 X 0~ 0 126 0 0x