Jameson Company produces paper towels. The company has established the following direct materials and direct labor standards for one case of paper towels: $ 1.20 Paper pulp (3 lbs. @ $0.40) Labor (2 hrs. @ $12) Total prime cost 24.00 $25.20 During the first quarter of the year, Jameson produced 55,000 cases of paper towels. The company purchased and used 165,700 pounds of paper pulp at $0.38 per pound. Actual direct labor used was 111,000 hours at $12.20 per hour. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Calculate the direct materials price and usage variances. Materials Price Variance 3,314 Favorable Materials Usage Variance 280 Unfavorable 2. Calculate the direct labor rate and efficiency variances. Labor Rate Variance -22,200 Unfavorable Labor Efficiency Variance 12,000 Unfavorable 3. Prepare the journal entries for (1) the direct materials price variance, (2) the direct materials usage variance, and (3) the direct labor variances. If an amount box does not require an entry, leave it blank or enter "O". Materials x 1. 54,280 X Direct Materials Price Variance x 2,714 Accounts Payable 51,566 x 2. Work in Process 54,000 X Direct Materials Usage Variance 280 Materials 54,280 3. Work in Process 1,080,000 X Direct Labor Efficiency Variance 12,000 Direct Labor Rate Variance 22,200 Wages Payable 1,101,100