Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.30 $1.26 oz. @ $0.20) Direct labor (0.08 hr. 1.44 @ $18.00) Standard prime cost $2.70 During the first week of operation, the company experienced the following actual results: a. Bars produced: 141,000. b. Ounces of direct materials purchased: 888,600 ounces at $0.21 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 11, 140 hours at $17.30. Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price $ Unfavorable Variance -8,88 $ Materials Usage Variance Unfavorable -60 2. Compute the rate variance and the efficiency variance for direct labor. $ Labor Rate Variance Favorable 8,912 x $ Labor Efficiency Variance Favorable 2,520 ~ Feedback 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank or enter "0". Materials 177,720 Direct Materials Price Variance 8,886 Accounts Payable 186,606 Record purchase of materials Work in Process 177,660 Direct Materials Price Variance x 60 Materials 177,720 Record usage of materials Work in Process 203,040 Direct Labor Rate Variance 8,912 x Direct Labor Efficiency Variance 2,520 Wages Payable 191,608 x Record labor variances