Unit Costs, Multiple Products, Variance Analysis, Journal Entries Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of direct labor and direct materials per unit for the year are as follows: Regular 10.00 0.15 Small 6.0 0.1 Direct materials (oz.) Direct labor (hrs.) The standard price paid per pound of direct materials is $1.60. The standard rate for labor is $8.00. Overhead is apolied on the basis of direct labor hours. A plantwide rate is used. Budgeted overhead for the year is as follows: Budgeted fixed overhead Budgeted variable overhead The company expects to work 12,000 direct tabor hours duing the year: standard overhead rates are computed using this activity level. For every smal $360,000 480,000 stapler produced, the company produces two regular staplers Actual operating data for the year are as follows a. Units produced: small staplers, 35,0oo; regular staplers. 70,000o. b. Direct materials purchased and used: 56,000 pounds at 31 53-3,000 for the small stapler and 43,000 for the regular staplet There were no beainning or ending direct materials inventories hours-3,600 hours for the small stapler and 31.200 hours for the regular stapter Total cost of direct labor: 134.200 d Variable overhead: $607.500. e. Fixed overhead: $350.000 3. Compute the direct labor rate and efficiency variances for each product. LRV LEV (Small) LEV (Regular) 3,700 V Favorable V Unfavorable Unfavorable V Feedback Prepare journal entries to record direct labor activity. If required, round to the nearest dollar. If an amount box does not require an entry, leave it blank 1. Record labor