European Styles, Inc, manuf ures woma blouses of one quality, which are produced in lots to fil cach special order. Its customers are deparument stores in various cities. European Styles sews the par- ticular stores' labols on the blouses. During November, the company worked on three orders, for which the month's job-cost records disclose the following data. I Case 10-49 Direct-Material and Direct- Labor Veriances; Job-Order Costing; Journal Entries (Appondi) (LO 10-1, 10-3, 10-6, 10-9) Hours Worked Material Used tyards) Boxes in Lot Lot Numbei 2,980 24,100 40,440 1,000 22 5,130 1,700 23 2,890 28,825 1,200 24 $1900 THKWaie The following additional information is available: 1. The firm purchased 95,000 yards of material during November at a cost of $106,400. 2. Direct labor during November amounted to $165,000. According to payroll records, production employees were paid $15.00 per hour. 3. There was no work in process on November 1. During November, lots 22 and 23 were completed. All material was issued for lot 24, which was 80 percent completed as to direct labor. 4. The standard costs for u box of six blouses are as follows: 24 yards at $1.10 per yard 3 hours at $14.70 per hr. $ 26.40 Direct materlal 44.10 Direct labor 3 hours at $12.00 per hr. 36.00 Production overhead $106.50 Stanciard cost per box Required: 1. Prepare a schedule computing the standard cost of lots 22, 23, and 24 for November. 2. Prepare a schedule showing, for each lot produced during November: a. Direct-material purchase price variance. b. Direct-material quantity variance. c. Direct-labor efficiency variance. d. Direct-labor rate variance. Indicate whether each variance is favorable or unfavorable. 3. Prepare journal entries to record each of the following events. Purchase of material, Incurrence of direct-labor cost. Standard Costing and Analysis of Dired Chapter 10 Addition of direct-material and dircct-labor cost to Work-in-Process Inventory. Recording of direct-material and direct-labor variances. (CPA, udapted)