A variance analysis investigating the purchase and use of direct materials and direct labour has been completed and the following results are known:

Direct materials purchases:

AQ × AP: 12,000 metres @ $3.45/m = $41,400

Direct materials use:

AQ × SP: 10,500 metres @ $3.25/m = $34,125

Quantity variance: $1,625U

Direct labour:

AH × SR: $25,594
SH × SR: $25,000
Wages paid: $21,156 for 1,980 hours worked

Additional information:

Actual production........................................................................5,000 units
Direct labour hours required per standard.................0.4 hours per unit

Required:

Prepare ALL the pertinent journal entries including the entries that originate the variances.