The following information regards White Corp.:

Expected production (units)	12,000
Standard pounds of DM usage per unit	5
Standard DM price per pound	$15
Standard DML hours per unit	4
Standard DML rate per hour	$35.00
Budgeted VMOH	$480,000
Budgeted FMOH	$960,000
	Actual
Units produced	12,800
Pounds of DM purchased	67,000
Total cost of DM purchased	$971,500
Pounds of DM used	63,000
DML hours worked	50,000
Total cost of DML	$1,900,000
VMOH	$550,000
FMOH	$920,000

VMOH & FMOH are both allocated using direct labor hours.

a) Calculate the following variances:

Direct materials price variance

Direct materials efficiency variance

Direct manufacturing labor rate variance

Direct manufacturing labor efficiency variance

VMOH spending variance

VMOH efficiency variance

FMOH spending variance

FMOH production-volume variance

b) Prepare the following journal entries:

Purchase of direct materials

Usage of direct materials

Paying of wages for direct manufacturing labor

Incurrence of VMOH & FMOH

Application of VMOH & FMOH to production

Closing out VMOH and FMOH accounts

Closing out variances to COGS

c) Provide a specific explanation for each variance calculated in part A