Trueform Products Inc., a U.S. company, produces a broad line of sports equipment and uses a standard costing system for control purposes. Last year, the company produced 8,600 varsity footballs. The standard costs associated with this football, along with the actual costs incurred last year, follow (per football): Standard Cost Actual Cost Direct materials: Standard: 3.70 feet at $8.00 per foot $ 29.60 Actual: 4.00 feet at $7.80 per foot $ 31.20 Direct labour: Standard: 0.90 hour at $10.50 per hour 9.45 Actual: 0.80 hour at $11.00 per hour 8.80 Variable manufacturing overhead: Standard: 0.90 hour at $5.50 per hour 4.95 Actual: 0.80 hour at $5.75 per hour 4.60 Total cost per football $ 44.00 $ 44.60 The president was elated when he saw that actual costs exceeded standard costs by only $0.60 per football. He stated, I was afraid that our unit cost might get out of hand when we gave out those raises last year in order to stimulate output. But its obvious our costs are well under control. There was no inventory of materials on hand to start the year. During the year, 34,400 feet of materials were purchased and used in production. Required: 1. For direct materials: a. Compute the price and quantity variances for the year. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). b. Prepare journal entries to record all activity relating to direct materials for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) 2. For direct labour: a. Compute the rate and efficiency variances. (Indicate the effect of variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). b. Prepare a journal entry to record the incurrence of direct labour cost for the year. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) 3. Compute the variable overhead spending and efficiency variances. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). 4. This part of the question is not part of your Connect assignment. 5. This part of the question is not part of your Connect assignment.