Rocky Mountain Camping Equipment, Inc. has established the following direct-material standards for its two products.
| Standard Quantity | Standard Price |
Standard camping tent | 12 yards | $6 per yard |
Deluxe back packing tent | 6 yards | $8 per yard |
During March, the company purchased 2,100 yards of tent fabric for its standard model at a cost of $13,440. The actual March production of the standard tent was 100 tents, and 1,250 yards of fabric were used. Also during March, the company purchased 800 yards of tent fabric for its deluxe backpacking tent at a cost of $6.320. The firm used 720 yards of the fabric during March in the production of 120 deluxe tents.
Required:
1. Compute the direct-material price variance and quantity variance for March.
2. Prepare journal entries to record the purchase of material. use of material, and incurrence of variances in March.
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