JAG, Inc. manufactures a product that has the direct materials standard cost presented below. Budgeted and actual information for the current month for the manufacture of the finished product and the purchase and use of the direct materials is also presented. Standard cost for direct materials: 1.60 lb. @ $2.50 per Ib. Finished goods (in units) DM usage (in pounds) DM purchases (in pounds) Total cost of DM purchases Budgeted 30,000 48,000 48,000 Actual 33,000 51,000 51,000 $120,000 $120,000 Instructions: 1. Calculate the DM Price, Efficiency, and Flexible-Budget Variances. [9 points) 2. Prepare the journal entries to enter the DM Price and Efficiency Variances into the accounting system. [6 points) 3. Assume that the variances are immaterial and prepare the journal entry to write them off to COGS. [3 points)