The X Company manufactures widgets. It has developed the following standards per finished unit for direct materials and direct labor: Direct materials: 5 lbs. at $5.00 per lb. Direct labor: 1 hour at $20.00 per hour Budgeted production in units: 20,000 units eeeeeeeee Actual production of finished units: 21,000 units Materials purchased: 120,000 lbs. at a total cost of $630,000. Materials price variance is recognized upon purchase. Direct materials used: 102.900 lbs. Direct labor used: 21,300 hours, actual cost S422,805. e 1. CALCULATE DIRECT MATERIAL PRICE VARIANCE AND PREPARE JOURNAL ENTRY. 2. CALCULATE DIRECT MATERIAL EFFICIENCY (QUANTITY) VARIANCE AND PREPARE JOURNAL ENTRY. 3. CALCULATE DIRECT LABOR PRICE AND EFFICIENCY (QUANTITY) VARIANCES AND PREPARE JOURNAL ENTRY. 4. PREPARE JOURNAL ENTRY TO CLOSE VARIANCE ACCOUNTS INTO COST OF GOODS SOLD. (Journal entries - go to next page) #1 DR CR