QUESTION #4 Pharmawealth manufactures vaccinations for distribution in Canada. The standard costs for 12 vaccinations regarding a recent outbreak are: Direct materials 24 L * $1.10 per Litre = $26.40 Direct labour 3 hours * $7.35 per hour = $22.05 During April, Pharmawealth worked on three separate orders of vaccinations. Job cost records for the month disclose the following: Lot Units in Lot Materials Used Hours Worked 2677 1,000 dozen 24,100 L 2.980 2678 1,700 dozen 40,440 L 5,130 2679 1,200 dozen 28,825 L 2,890 You have been able to gather the following information: 1. Pharmawealth purchased 95,000 L of material during April at a cost of $106,400. The materials price variance is recorded when goods are purchased, and all inventories are carried at standard cost. 2. Production employees under the union contract are paid $7.50 per hour. 3. There was no beginning work in process. During April, lots 2677 and 2678 were completed, and all materials were issued for lot 2679, which was 80% complete in terms of labour. Required a. Calculate the materials price variance and make the appropriate journal entry. b. Calculate the remaining relevant variances for total production. C. Prepare journal entries to charge materials and labour to production