a. Direct Material purchase price variance

b. Direct Material quantity variance

1a. Record the purchase of material on account and the direct material purchase price variance

2b. Record the addition of direct material cost to work in progress inventory and the direct material quantity variance

Problem 10-46 Direct-Material Variances; Journal Entries (Appendix) (LO 10-1, 10-3, 10-9) Rocky Mountain Camping Equipment, Inc, has established the following direct-material standards for its two products During March, the company purchared 5,400 yards of tent fabric for its standard model at a cost of $34,020. The actuol March production of the standard tent was 240 tents, and 3,470 yards of fabric were used. Also during March, the company purchased 2,40 yords of the same tent fabric for its deluxe backpacking tent at a cost of $13,920. The firm used 2,880 yords of the fabric during Marct in the production of 320 deluxe tents. Required: 1. Compute the direct-material purchase price variance and quantity variance for March 2. Prepare joumal entries to record the purchase of material, use of material, and incurrence of variances in March. Compute the direct-material purchase price variance and quantity variance f calculations. Indicate the effect of each variance by selecting "Favorable" or effect (i.e., zero variance).) Journal entry worksheet Record the purchase of direct material on account and the direct-material purchase price variance. Note: Enter debits before credits. Journal entry worksheet 1 Record the addition of direct-material cost to work-in-process inventory and the direct-material quantity variance. Note: Enter debits before credits