Perry Products Inc. which makes school desks, uses a standard cost system and provides the following data concerning its operations during the last month (October):

Description	Units or $
Units of output	750 units
Standard quantity of materials per desk	16 sq. m.
Standard price per sq. m. materials	$20.00/sq. m.
Actual purchase cost of materials	$259,120
Actual quantity of materials purchased	12,640 sq. m.
Actual quantity of materials used in production.	11,850 sq. m.
Std. hrs allowed per unit for labour	3 hrs. per desk
Std. wage rate	$30.00
Actual wage rate	$31.00
Actual direct labour hours used	2,325 hrs.

Required:

1. Prepare fully labeled variance diagrams(used in class) for Direct Materials and Direct Labour including the specific dollar amounts for all variances. (10 Marks)

1. Prepare journal entries only for materials and labour.(8 Marks)