James Company manufactures t-shirts. During the year, it manufactured 250,000 t-shirts, using 2 hours of direct labor at a rate of $8.50 per hour. The materials and labor standards for manufacturing the t-shirts are: Direct materials (6 yards of fabric @ $3 per yard) $18 Direct labor (2.4 hours @ $8.00 per hour) 17 It took James 1,400,000 yards at $2.50 per yard to make the 250,000 t-shirts. What is the entry to close the variances of labor and materials? a. debit Materials Price Variance, 700,000 debit Materials Usage Variance, 300,000 debit Labor Efficiency Variance, 800,000 credit Cost of Goods Sold, 1,800,000 debit Cost of Goods Sold, 250,000 credit Labor Rate Variance, 250,000 b. debit Cost of Goods Sold, 1,800,000 credit Materials Price Variance, 700,000 credit Materials Usage Variance, 300,000 credit Labor Efficiency Variance, 800,000 debit Labor Rate Variance, 250,000 credit Cost of Goods Sold, 250,000 c. debit Materials Price Variance, 750,000 debit Materials Usage Variance, 250,000 debit Labor Efficiency Variance, 850,000 credit Cost of Goods Sold, 1,850,000 debit Cost of Goods Sold, 300,000 credit Labor Rate Variance, 300,000 d. debit Cost of Goods Sold, 1,850,000 credit Materials Price Variance, 750,000 credit Materials Usage Variance, 250,000 credit Labor Efficiency Variance, 850,000 debit Labor Rate Variance, 300,000 credit Cost of Goods Sold, 300,000 als