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 for Direct Materials and Direct Labour including the specific dollar amounts for all variances.

Prepare journal entries only for materials and labour.