The standard cost data for Madison Machinery Company show the following costs for producing one of its machines:

Direct materials. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400 pounds at $8 = $3,200

Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .150 hours at $15 = $2,250

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

Required:

1. Compute the following variances:

a. Materials price variance (raw materials 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.