Genola Fashions began production of a new product on June 1. The company uses a standard cost system and has established the following standards for one unit of the new product

Standard Quantity or Hours

Standard Price or Rate

Standard Cost

Direct materials

4.2

yards

$6.20

per yard

$26.04

Direct labor

0.3

hours

$10.60

per hour

$3.18

During June, the following activity was recorded for the new product:

a.	Purchasing acquired 9,600 yards of material at a cost of $5.93 per yard.
b.	Production used 8,500 yards of the material to manufacture 1,750 units of the new product.
c.	Production reported that 855 direct labor-hours were worked on the new product at a cost of $9,918

1.	For direct materials:

a.

Compute the materials price and quantity variances. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorabl

b.

Prepare journal entries to record the purchase of materials and the use of materials in production. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the purchase of materials.

Record use of materials in production.

2.	For direct labor:

a.

Compute the labor rate and efficiency variances. (Indicate the effect of each variance by selecting "F" for favorable,

b. Prepare a journal entry to record the incurrence of direct labor cost for the month. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

3.	Post the entries you have prepared to the following T-accounts:

Prepa

e, and "None" for no effect (i.e., zero variance)