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Standard Costs, Decomposition of Budget Variances, Direct Materials and Direct Labor EZ Tees Corporation produces T-shirts. The company uses a standard costing system and has set the following standards for direct materials and direct labor (for one shirt): During the year, EZ Tees produced 9,500 T-shirts. The actual fabric purchased was 14,150 yards at $2.76 per yard. There were no beginning or ending inventories of fabric. Actual direct labor was 10,570 hours at $19.50 per hour. Required: 1. Compute the costs of fabric and direct labor that should have been incurred for the production of 9,500 T-shirts. Direct materials $ Direct labor $ 2. Compute the total budget variances for direct materials and direct labor. Direct materials $ Direct labor 3. Break down the total budget variance for direct materials into a price variance and a usage variance. Materials Price Variance Materials Usage Variance . 4. Break down the total budget variance for direct labor into a rate variance and an efficiency variance. Labor Rate Variance $ Labor Efficiency Variance Prepare the journal entries associated with these variances. If an amount box does not require an entry, leave it blank