Skip Company produces a product called Lem. The standard direct material cost to produce one unit of Lem is four quarts of raw material at $2.50 per quart. During May, 4,200 quarts of raw material were purchased at a cost of $10,080. All the purchased material was used to produce 1,000 units of Lem. a. Compute the material price variance and material quantity variance for May. Note: Do not use a negative sign with your answers. Material price variance $ 2.4 x Favorable Material quantity variance $ (420) x Unfavorable b. Assume the same facts except that Skip Company purchased 6,000 quarts of material at the previously calculated cost per quart, but used only 4,200 quarts. Compute the material price variance and material quantity variance for May, assuming that Skip identifies variances at the earliest possible time. Note: Do not use a negative sign with your answers. Material price variance $ (600) X Favorable Material quantity variance $ 500 Unfavorable C. Prepare the journal entries to record the material price and usage variances calculated in (b). Note: List any multiple debits or any multiple credits in alphabetical order by account name. Account Debit Credit Raw Material Inventory 1,500 x 0 VOH Efficiency Variance * * 07 600 x Accounts Payable X 0 14,400 x To record material price variance Work in Process Inventory 10,000 X 0 Material Quantity Variance 500 X 0 Raw Material Inventory 0 10,500 To record material quantity variance