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 10.200 varsity footballs. The standard costs associated with this football, along with the actual costs incurred last year follow (per football: Actual Cost $63.20 Standard Cost Direct materials: Standard: 3.70 feet at $16.00 per foot $59.20 Actual: 4.00 feet at $15.80 per foot Direct labour: Standard: 0.90 hour at $18.50 per hour 16.65 Actual: 0.89 hour at $19.00 per hour Variable manufacturing overhead: Standard: 0.98 hour at $13.50 per hour 12.15 Actual: 0.80 hour at $13.75 per hour Total cost per football $88.00 15.20 11.00 $89.40 The president was elated when he saw that actual costs exceeded standard costs by only $140 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 it's obvious our costs are well under control." There was no inventory of materials on hand to start the year. During the year, 40,800 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 (ie, zero variance). Material price variance Material quantity 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.) View transaction list Journal entry worksheet Record purchase of materials on account and related variance, Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general Journal 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 (e., zero variance). Labour rate variance Labour officiency variance b. Prepare a journal entry to record the incurrence of direct labour cost for the year. (I no entry is required for a transaction, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet