The standard cost data for Madison Machinery Company show the following costs for producing one of its machines During April, four machines were built, with actual total costs as follows:

Materials purchased 2,000 pounds at $\$ 8.20=\$ 16,400$

Materials used.

1,700 pounds Direct labor incurred 625 hours at $\$ 14.80=\$ 9,250$

1. Compute the following variances:

a. Materials price variance (inventory is carried at standard cost)

b. Materials quantity variance

c. Labor rate variance

d. Labor efficiency variance 2. Record the standard materials and labor costs in Work-in-Process Inventory, and enter the variances in appropriate journal entries.