Data for Shannon Inc. are given in E22-7.

Instructions

Journalize the entries to record the materials and labor variances.

Data from E22-7

Shannon Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.

Direct materials (8 pounds at $2.50 per pound) ............................ $20
Direct labor (3 hours at $12.00 per hour) ....................................... $36

During the month of April, the company manufactures 230 units and incurs the following actual costs.

Direct materials purchased and used (1,900 pounds) ............................ $4,940
Direct labor (700 hours) .............................................................................. $8,120