This problem continues the Draper Consulting, Inc., situation from Problem 22-39 of Chapter 22. Assume Draper has created a standard cost card for each job. Standard direct materials include 14 software packages at a cost of $900 per package. Standard direct labor costs per job include 90 hours at $120 per hour. Draper plans on completing 12 jobs during October. Actual direct materials costs for October included 90 software packages at a total cost of $81,450. Actual direct labor costs included 100 hours per job at an average rate of $125 per hour. Draper completed all 12 jobs in October.

Requirements

1. Calculate direct materials price and efficiency variances.

2. Calculate direct labor price and efficiency variances.

3. Prepare journal entries to record the use of both materials and labor for October for the company.