To manufacture the product, the company uses a standard cost system that actually incorporates standard costs into the accounting records. The following standards have been established for each 100 gallon batch of the drug. Normal capacity is 6,000 gallons per year with 2,000 machine hours in the Bottling Department. The company had no beginning inventory of direct materials or finished goods. COMPANY STANDARDS FOR BOTTLING DEPARTMENT FOR PRODUCTION OF UNCLE JERRY'S FAT FREE HAIR RESTORER Direct Materials: Ethyl Follicolate (Secret Ingredient l (S11)) Chlorocellulite (Secret Ingredient 2 (SI 2)) 60 gallons at $ 40 gallons at S 2.50 per gallon 3.50 per gallon Direct Labor: Mixing Bottling 6 hours at S 8.00 per hour 7.50 per hour 4 hours at S Variable Manufacturing Overhead: Mixing Department (applied on basis of labor hours) Bottling Department (applied on basis of machine hours) S 4.50 per hour S 3.25 per hour Fixed Manufacturing Overhead: Mixing Department (applied on basis of labor hours) Bottling Department (applied on basis of machine hours) S 75,000 S 55,000 The actual results for the year ending June 30, 20X5 are provided below FOR PRODUCTION OF UNCLE JERRY'S FAT FREE HAIR RESTOREHR FOR YEAR ENDING JUNE 30, 20x5 COMPANY ACTUAL RESULTS FOR BOTTLING DEPARTMENT Direct Materials Purchased: 3,500 gallons at S 2,000 gallons atS 2.30 per gallon 4.00 per gallon SI 1 SI 2 Direct Materials Used: 3,200 gallons 1,800 gallons SI 1 SI 2 Direct Labor: 275 hours at a total cost of S 2,270 225 hours at a total cost of S 1,600 Mixing Bottling Variable Manufacturing Overhead: $ 850 Mixing Department Botting Department (applied on basis of machine hours) S 7.,850 Fixed Manufacturing Overhead Mixing Department (applied on basis of labor hours) S 50,000 The company actually produced 5,000 gallons of the drug during the year. The Bottling Department used 1,500 machine hours during the year. The company had 100 gallons of beginning and ending work in process inventories, 75% of what was transferred to finished goods during the period was sold for $140,000 on account Prepare all journal entries, in proper general journal form, to record all transactions for the year, in summary form, using a standard cost system. (2) (3) Prorate the variances, assuming they are considered significant by management, to allow the company to arrive at actual costs for the period. Round all percentages for the calculations to two decimal places (four decimal places in all) and all dollar amounts to the nearest whole dollar