Ehrlich Inc. makes a product with the following standard costs for direct material and direct labor: Direct Material Direct Labor Quantity/Hours Per Unit Price/Rate 6.00 lbs $ 3.80 1.5 hrs $ 16.00 During the most recent month, 6,300 units were produced. The costs associated with the month's production of this product were as follows: Quantity/Hours Price/Rate Materials purchased 42,000 lbs $3.00/per lbs. Materials used in production 32,000 lbs Direct labor 9,950 hrs $14.50/per hr. Required: Part 1 - Calculate the standard cost expected to make 6,500 units of product Part 2 Compute applicable Variances... 1. Material Price Variance 2. Material Quantity Variance 3. Labor Rate Variance 4. Labor Efficiency Variance 5. Labor Spending Variance Part 3 - Prepare applicable Journal Entries to Record... 1. the purchase of materials on account for the month. 2. the use of materials for the month. 3. the direct labor cost for the month. 4. the closing of variance accounts at the end of the month