Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet: Direct materials 5 lbs. $2.60) $13.00 Direct labor (0.75 hr. @ $18.00) 13.50 Fixed overhead (0.75 hr. 54.00) 13.00 Variable overhead (0.75 hr. 0 $3.00) 2.25 $31.75 Algers computes its overhead roles using practical volume, which is 51.000 units. The actual results for the year are as follows: 3. Units produced: 53.000 5. Direct materials purchased. 274,000 pounds at $2.50 pur pound 1. Direct materials used: 270200 pounds d. Direg lato: 10.100 hours at $17.95 per hour xed cod: $ 181,700 1. Variable ovulised. 12 000 5. Prepare journal entries for the following: a. The purchase or direct materials b. The issuance or direct materials to production (Work In Process) c. The addition of direct labor to Work in Process d. The addition of overhead to Work in Process e. The incurrence of actual overhead costs If an amount box does not require an entry, leave it blank. Accounts Payable Direct Materials Usage Variance 89 1. Prepare Journal entries for the closing out of variances to cost of Goods Sold. If an amount box does not require an entry, leave it blank. First, close direct materials and direct labor variances Second, recognize the avertizad variances IT an amount box does not require an entry leave it blank Third, as the varias Note: use the variances with detalt talatie destur understand that box does not require a ty leave it Bank