sells high quality products to their customers. These products sell for $240 each. The company has the following information with regards to the DM and DL usage and price expectations. Direct materials 12 kg per unit @$4 per part Direct labour 2.5 hours per unit @20 per hour The company had planned to produce and sell 4,000 units. In order to retain some DM on hand at the end of the period they purchased 50,000 kilograms at $3.90 per kilogram. The company actually produced 3,900 units and used 45,825 kilograms of direct materials. The company's DL cost totalled $235,950 for the 10,725 hours that were actually used. Required: (a) Determine the company's DM and DL price and efficiency variances; specify the amount and sign for all. (b) Record the journal entries to accompany these three transactions: - purchase of DM on account - usage of DM, and - DL cost incurred (accrued).