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Question 2 The Bartlesville plant of Harmon Company produces an industrial chemical. At the beginning of the year, the Bartlesville plant had the following standard cost sheet: Direct materials R16.00 (10 kg @ R1.60 per kg) Direct labour (0.75 hour @ R18 per hour) R13.50 Variable overhead (0.75 hour @ R3 per hour) R2.25 Fixed overhead (0.75 hour @ R4 per hour) R3.00 Standard cost per unit R34.75 The Bartlesville plant calculates its overhead rates using practical volume, which is 72 000 units. The actual results for the year are as follows: Units produced 70 000 Direct materials purchased 744 000 kg @ R1.50 per kg Direct materials used 736 000 kg Direct labour 56 000 hours @ R17.90 per hour Variable overhead R175 400 Fixed overhead R214 000 Required: Prepare journal entries for the following: The purchase of direct materials ii. The issuance of direct materials to production iii. The addition of direct labour to production iv. The addition of overheads to production V. The incurrence of actual overhead costs vi. Closing off of variances to Cost of Goods Sold