. Prepare all variances). Problem 9-28 Unit Costs, Multiple Products, Variance Analysis, Journal Entries Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: Small 6,0 0.1 Regular 10.00 0.15 Direct materials (oz.) Direct labor (hrs.) The standard price paid per pound of direct materials is $1.60. The standard rate for laboris $8.00. Overhead is applied on the basis of direct labor hours. A plantwide rate is used. Bude geted overhead for the year is as follows: Budgeted fixed overhead Budgeted variable overhead $360,000 480.000 The company expects to work 12,000 direct labor hours during the year; standard overhead rates are computed using this activity level. For every small stapler produced, the company pro duces two regular staplers. Actual operating data for the year are as follows: a. Units produced: small staplers, 35,000; regular staplers, 70,000. b. Direct materials purchased and used: 56,000 pounds ar $1.55-13,000 for the small sta- pler and 43,000 for the regular stapler. There were no beginning or ending direct materi- als inventories. c. Direct labor: 14,800 hours3,600 hours for the small stapler and 11,200 hours for the regular stapler. Total cost of direct labor: $114,700. d. Variable overhead: $607,500. e. Fixed overhead: $350,000. a Required: 1. Prepare a standard cost sheet showing the unit cost for each product. 2. Compute the direct materials price and usage variances for each product. Prepare journal entries to record direct materials activity. 3. Compute the direct labor rate and efficiency variances for each product. Prepare journal entries to record direct labor activity 4. Compute the variances for fixed and variable overhead. Prepare journal entries to record overhead activity. All variances are closed to Cost of Goods Sold. 5. Assume that you know only the total direct materials used for both products and the total direct labor hours used for both products. Can you compute the total direct materials and direct labor usage variances? Explain. Wiold