Just Right Inc. produces jeans. The following standards have been established: Direct materials (4 metres @ R120) R480 Direct labour (1.5 hours @ R90) R135 During the year, 25000 pairs of jeans were produced. 150000 metres of demin were purchased and used at R123 per metre. Actual direct labour hours were 36800 at R92.50 per hour. Required: 3.1 Calculate all direct materials and direct labour variances. 3.2 Prepare the following journal entries: a. Purchase of raw materials b. Issuance of raw materials c. Addition of labour to work in process d. Closing of variances to Cost of goods sold