. Karl Corp, which uses a standard cost accounting system, determines thas the following variances arose in production during June: (20 points) Amount 850 favorable 700 favorable Variance Materials purchase price.800 unfavorable Materials quantity Labor efficiency Labor rate...800 unfavorable Direct materials purchases totaled $90,000 at standard cost, while $76,000 in materials were taken from inventory for use in production Actual direct labor totaled $80,000, while actual overhead incurred was $69,000.(Assume no variance for factory overhead) Ten thousand units were transferred to Finished Goods at a standard cost of $14.5 per unit Instructions: Prepare the journal entries to record . The purchase of materials (The materials price variance is recorded at the time of purchase) 3. The use of labor in production 4. The charging of overhead to production S The transfer of finished goods to the storeroom Credit Debit Account