oward Company has established the following standards:

Direct materials: 1.0 pounds at $3.10

Direct labor: 1.8 hours at $8 per hour

Additional information was extracted from the accounting records:

Actual production: 24,000 completed units

Direct materials purchased: 32,000 pounds at $2.80, or $89,600

Direct materials consumed: 26,000 pounds

Actual labor incurred: 42,200 hours at $7.7, or $324,940

Direct-labor rate variance: $40,660 favorable

Direct-labor efficiency variance: $20,000 unfavorable

Assume that the company computes variances at the earliest point in time.

Required:

a. What is the amount of Direct Material Purchase Price Variance?

b. Prepare the journal entry to record the usage of direct materials.

c. Prepare the journal entry to record the incurrence of direct labor costs.

What is the amount of Direct Material Purchase Price Variance? (Do not round intermediate calculations.)

Prepare the journal entry to record the usage of direct materials and the incurrence of direct labor costs. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the usage of direct materials.

Record the incurrence of direct labor costs.