Problem 9.20 (Direct Labor and Direct Materials Variances, Journal Entries) Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case ot paper towels: pare, pulp @ Labor (2 hrs. @ Total s 1.20 S2i20 During the first quarter Of the year, Jameson produced 45,000 cases Of paper towels. The company purchased and used 135,700 pounds Of paper pulp at SO.38 per pound. Actual direct labor used was 91 ,OOO hours at S12_ 10 per hour. Required: 1. Calculate the direct materials price and usage variances. 2_ Calculate the direct labor rate and emciency variances. 3 Prepare the journal entries for the direct materials and direct labor variances. 4. Describe how flexible budgeting variances relate to the direct materials and direct labor variances computed in Requirements 1 and 2.