Topline Surf Boards manufactures a single product. The standard cost of one unit of this product is as follows: Direct materials: 2 metres at $3 per metre Direct labour : 1 hour at $4.50 per hour Variable manufacturing overhead: 1 hour at $3 per hour Fixed manufacturing overhead: 1 hour at $5 per hour Total standard variable cost per unit $ 6.00 4.50 3.00 5.00 $18.50 During October 6,000 units were produced. Selected data relating to the month's production follow $ 57,00 Materials purchased: 20,000 metres at $2.85 per metre Materials used in production: 12,650 metres Direct labour: 7 hours at $? per hour Variable sanufacturing overhead cost incurred Variable sanufacturing overhead efficiency variance Denominator level of activity for October Fixed manufacturing overhead budget variance $ 27,950 $ 20,475 $ 1,500 5,200 hours 1,000 There was no beginning inventory of raw materials. The variable and fixed manufacturing overhead rates are based on direct labour hours Required: 1. For direct materials: a. Compute the price and quantity variances for October (Indicate the effect of each variance by selecting "p" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance).) Price variance Quantity Valance b. Prepare journal entries to record activity for October View transaction list Journal entry worksheet 1 2 Record the materials price variance. Note: Enter debits before credits. Event General Journal Debit Credit 1 b. Prepare journal entries to record activity for October. View transaction list Journal entry worksheet