Rocky Mountain Camping Equipment, Inc. has established the following direct-material standards for its two products.

		Standard Quantity				Standard Price
Standard camping tent			12	yards		$	6	per yard
Deluxe backpacking tent			6	yards		$	8	per yard

During March, the company purchased 2,100 yards of tent fabric for its standard model at a cost of $13,440. The actual March production of the standard tent was 100 tents, and 1,250 yards of fabric were used. Also during March, the company purchased 800 yards of the same tent fabric for its deluxe backpacking tent at a cost of $6,320. The firm used 720 yards of the fabric during March in the production of 120 deluxe tents.

Required:

1. Compute the direct-material purchase price variance and quantity variance for March.

2. Prepare journal entries to record the purchase of material, use of material, and incurrence of variances in March.

a. Direct-material purchase price variance b. Direct-material quantity variance Record the purchase of direct material on account and the direct-material purchase price variance. Note: Enter debits before credits. Transaction General Journal Debit Credit a. ............ Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance. Note: Enter debits before credits. Transaction General Journal Debit Credit