Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80) Direct labor (1.1 hr. @ $20) Total prime cost $4.20 22.00 $26.20 During the year, Haversham produced 9,600 shirts. The actual fabric purchased was 14,300 yards at $2.72 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,680 hours at $19.50 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,600 shirts. Direct materials Direct labor 2. Compute the total budget variances for direct materials and direct labor. Direct materials Favorable Direct labor Favorable 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Materials Price Variance Favorable Materials Usage Variance Favorable Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank or enter "0". Price Variance 10 III Usage Variance 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Labor Rate Variance Favorable Labor Efficiency Variance Unfavorable Feedback Check My Work 4. If necessary, refer to the textbook for the applicable formulas. Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank or enter "0". Haversham Corporation produces dress shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): Fabric (1.5 yds. @ $2.80) Direct labor (1.1 hr. @ $20) Total prime cost $4.20 22.00 $26.20 During the year, Haversham produced 9,600 shirts. The actual fabric purchased was 14,300 yards at $2.72 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,680 hours at $19.50 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,600 shirts. Direct materials Direct labor 2. Compute the total budget variances for direct materials and direct labor. Direct materials Favorable Direct labor Favorable 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Materials Price Variance Favorable Materials Usage Variance Favorable Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank or enter "0". Price Variance 10 III Usage Variance 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Labor Rate Variance Favorable Labor Efficiency Variance Unfavorable Feedback Check My Work 4. If necessary, refer to the textbook for the applicable formulas. Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank or enter "0