(Solved): Kalamazoo Container Company manufactures recyclable soft-drink cans. A unit o ...

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Kalamazoo Container Company manufactures recyclable soft-drink cans. A unit of production is a case of 12 dozen cans. Actual material purchases amounted to 239,000 kilograms at \( \$ 0.81 \) per kilogram. Actual costs incurred in the production of 50,000 units follow: direct labor - \( \$ 213,200 \) for 13,000 hours and direct materials - \( \$ 170,100 \) for 210,000 kilograms The production staff and the controller have set the following standards: Direct material Quantity 4 kilograms at a price of \( \$ 0.79 \) per kilogram and Direct labor - Quantity \( 0.25 \) of an hour at a rate of \( \$ 16 \) per hour Required: Compute the price and efficiency variance for direct labor. Prepare the journal entries associated with direct labor.