Zanellas Smart Shawls, Inc., is a small business that Zanella developed while in college. Shebegan hand-knitting shawls for her dorm friends to wear while studying. As demand grew, she hired some workers and began to manage the operation. Zanellas shawls require wool and labor. She experiments with the type of wool that she uses, and she has great variety in the shawls sheproduces. Zanella has bimodal turnover in her labor. She has some employees who have beenwith her for a very long time and others who are new and inexperienced. Zanella uses standard costing for her shawls. She expects that a typical shawl should take 3hours to produce, and the standard wage rate is $9.00 per hour. An average shawl uses 13 skeinsof wool. Zanella shops around for good deals and expects to pay $3.40 per skein. Zanella uses a just-in-time inventory system, as she has clients tell her what type and color ofwool they would like her to use. For the month of April, Zanellas workers produced 200 shawls using 580 hours and 3,500 skeins of wool. Zanella bought wool for $9,000 (and used the entire quantity) and incurred laborcosts of $5,520.Required:1. Calculate the price and efficiency variances for the wool and the price and efficiencyvariances for direct manufacturing labor.2. Record the journal entries for the variances incurred.