Journal Entries under Standard Costing (Appendix), Posting Journal Entries for Varlances (Appendix) (LO 10-6, 10-9) [The following Information applies to the questions displayed below.] Canandaigua Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. The following standards have been set by the production-engineering staff and the controller. Direct Labor: Quantity, 0.11 hour Rate, $5.50 per hour Direct Material: Quantity, 4 kilograms Price, $0.32 per kilogram Actual material purchases amounted to 55,200 kilograms at $0.350 per kilogram. Actual costs incurred in the production of 12,000 units were as follows: Direct labor: Direct material: $9,492 for 1,680 hours $17,430 for 49,800 kilograms