Please do not give image format and solve all required 4Problem 9.32 Basic Variance Analysis, Revision of Standards, Journal EntriesPetrillo Company produces engine parts for large motors. The company uses a standard costsystem for production costing and control. The standard cost sheet for one of its higher volumeproducts (a valve) is as follows: Direct materials (7 lbs. @ $5.40)Direct labor (1.75 hrs. @ $18)Variable overhead (1.75 hrs. @ $4.00)Fixed overhead (1.75 hrs. @ $3.00)Standard unit cost$37.8031.507.005.25$81.55During the year, Petrillo had the following activity related to valve production:a. Production of valves totaled 20,600 units.b. A total of 135,400 pounds of direct materials was purchased at $5.36 per pound.C.There were 10,000 pounds of direct materials in beginning inventory (carried at $5.40 perpound). There was no ending inventory.d. The company used 36,500 direct labor hours at a total cost of $656,270.e. Actual fixed overhead totaled $110,000.f. Actual variable overhead totaled $168,000.Petrillo produces all of its valves in a single plant. Normal activity is 20,000 units per year. Stand-ard overhead rates are computed based on normal activity measured in standard direct labor hours.Required:1. Compute the direct materials price and usage variances.2. Compute the direct labor rate and efficiency variances.3. Compute overhead variances using a two-variance analysis.4. Compute overhead variances using a four-variance analysis.5. Assume that the purchasing agent for the valve plant purchased a lower-quality direct mate-rial from a new supplier. Would you recommend that the company continue to use thischeaper direct material? If so, what standards would likely need revision to reflect this deci-sion? Assume that the end product's quality is not significantly affected.6. Prepare all possible journal entries (assuming a four-variance analysis of overhead variances).in lournal Entries

Name: Please do not give image format and solve all required 4Problem 9.32 B
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Description: Please do not give image format and solve all required 4Problem 9.32 Basic Variance Analysis, Revision of Standards, Journal EntriesPetrillo Company produces engine parts for large motors. The company uses a standard costsystem for production costing