Firefly Corporation produces jewelry and uses a standard costing system. For one of its products, the company has the following standard cost sheet:

Direct materials 3 lbs @ $12.20 each $36.60 Direct Labor 5 hours @ $9.45 $47.25 MOH: Variable $3.50 per DMLH $17.50 Fixed $1.50 per DMLH $ 7.50 Total Cost per unit $108.85

During the current month, 504 units were completed, which was 5% more than was planned. The accounting records show the following actual costs and other production data for the month:

Direct materials purchased: 1700 pounds @ $12.15 Direct materials used: 1,550 pounds Direct labor payroll: 2,450 hours @ $9.75

Required:

1. Calculate all possible variances for direct materials; prepare the necessary journal entries.
2. Calculate all possible variances for direct labor; prepare the necessary journal entries.