Assume Haupt Consulting has created a standard cost card for each job.

Standard direct materials include 10 software packages at a cost of \($1,000\) per package. Standard direct labor costs per job include 100 hours at \($100\) per hour. Haupt plans on completing 10 jobs during October.

Actual direct materials costs for October included 95 software packages at a total cost of \($97,000\). Actual direct labor costs included 110 hours at an average rate of \($105\) per hour. Haupt completed all 10 jobs in October.

Requirements 

1. Calculate direct materials price and efficiency variances.

2. Calculate direct labor rate and efficiency variances.

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