DM & DL variances; journal entries Madzingas Draperies manufactures curtains. Curtain #4571 requires the following:

Direct material standard	10	square yards at $5 per yard
Direct labor standard	5	hours at $10 per hour

During the second quarter, the company purchased 6,800 square yards at a cost of $33,320 and used 6,600 square yards to produce 600 Curtain #4571s. Direct labor totaled 3,040 hours for $31,920. a. Compute the material price and usage variances. Note: Do not use a negative sign with your answers.

Material price variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
Material quantity variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable

b. Prepare the journal entries for the purchase and use of direct material. Note: Round amounts to the nearest whole dollar. Note: Record any multiple debits or any multiple credits in alphabetical order by account name.

Account	Debit	Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
To record material price variance
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
To record material quantity variance

c. Compute labor rate and labor efficiency variances. Note: Do not use a negative sign with your answers. Note: Round your final answer to the nearest whole dollar.

Labor rate variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
Labor efficiency variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable
Total labor variance	Answer	AnswerFavorableUnfavorableNeither favorable or unfavorable

d. Prepare the journal entry to accrue direct labor cost and record the labor variances for the quarter.

Account	Debit	Credit
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
AnswerAccounts PayableCost of Good SoldLabor Efficiency VarianceLabor Rate VarianceMaterial Price VarianceMaterial Quantity VarianceOH Spending VarianceRaw Material InventoryVOH Efficiency VarianceVolume VarianceWages PayableWork in Process Inventory	Answer	Answer
To record labor variances