Emerson Company produces ceramic teapots. Emerson allocates overhead based on the number of direct labor hours. The company is considering using a standard cost system and has developed the following standards (a batch is 100 teapots).

Standard Costs:

Direct Material 60 lbs. per batch $ 5.00 per lb.

Direct Labor 3.0 hr. per batch $17.00 per hr.

Variable Manufacturing Overhead 3.0 hr. $7.00 per hr.

Fixed Manufacturing Overhead 3.0 hr. $3.00 per hr.

2018 Budgeted Data for February:

Budgeted production, 121 batches (100 teapots each batch)

Denominator Hours, 363 DLH. (Emerson applies overhead on the basis of direct labor hours.)

Budgeted variable overhead, $2,541

Budgeted fixed overhead, $1,089.

2018 Actual Results for February:

Direct material purchases were 4,500 lbs. at a cost of $4.70 per lb.

Direct material used was 4,100 lbs.

Direct labor costs was $3,344 at an average direct labor cost per hour of $17.60.

Total variable manufacturing overhead was $1,406.

Total fixed manufacturing overhead was $1,490.

Actual production was 60 batches.

Q. Prepare journal entries for:

a. material price and quantity variances.

b. labor rate and efficiency variances.