The Bartlesville plant of Harmon Company produces an industrialchemical. at the beginning of the year, the Bartlesville plant hadthe following standard cost sheet:

Direct material: (10 pounds @ $1.60)          $16.00

Direct labor: (0.75 hours @$18.00)             $13.50

Variable overhead: (0.75 @ $4.00)               $3.00

Fixed overhead: (0.75 @$3.00)                    $2.25

                                                                      _____

Standard cost per unit                                 $34.75

The Bartlesville plant computes its overhead rates usingpractical volume, which is 72,000 units. The actual results for theyear are as follows:

a. Units produced: 70,000.

b. Direct materials purchased: 744,000pounds @ $1.50 per pound.

c.   Direct materials used:736,000 pounds.

d. Direct labor: 56,000 hours @ $17.90per hour.

e. Fixed overhead: $214,000

f.   Variable overhead:$175,400

Required:

1. Calculate all the following variances: (MUST show work)

a. Direct materials price andefficiency variances

b. Direct labor price and efficiencyvariances.

c.   Variable overhead priceand efficiency variances.

d. Fixed overhead price and efficiencyvariances.

2. Record all the necessary journal entries for:

a. Materials purchases.

b. Materials used in production.

c.   Direct labor costsincurred in production.

d. Actual variable overhead costsincurred.

e. Variable overhead costsapplied.

f.   Actual fixed overheadcosts incurred.

g. Fixed overhead costs applied.

h. Recognition of variable overheadvariances.

i.   Recognition of fixedoverhead variances.

j.    Closing of allthe variance accounts