1. Pretty Draperies manufactures curtains. A certain window requires the following:

Direct materials standard: 10 square yards at $5 per yard

Direct labor standard: 5 hours at $10

During the second quarter, the company made 1,500 curtains and used 14,000 square yards of fabric costing $68,600. Actual direct labor hours used totaled 7,600 hours for $79,800.

Compute the direct manufacturing labor rate (price) and quantity (efficiency) variances for the quarter (show calculations):

DL rate variance $_____________________

Circle one: Favorable Unfavorable

DL quantity variance $__________________

Circle one: Favorable Unfavorable

Prepare (1) journal entry to record the variances and (2) to close variance accounts assuming that variances are immaterial:

___________________________________________________DR_____________CR__________(1)_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ (2)____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________