Algers Company produces dry fertilizer. At the beginning of the year, Algers had the following standard cost sheet:Direct materials (5lbs. @ $2.60) $13.00Direct Labor (0.75 hr @ $18.00) 13.50Fixed overhead (0.75 hr @ $4.00) 3.00Variable overhead (0.75 hr @ $3.00) 2.25Standard cost per unit $31.75Algers computers is overhead rates using practical volume, which is 54,000 units. The actual results for the year are as follows:a. Units produced: 53,000b. Direct materials purchased: 274,000 pounds at $2.50 per poundc. Direct materials used: 270,300 poundsd. Direct labor: 40,100 hours at $17.95 per houre. Fixed overhead: $161,700f. Variable overhead: $122,000Required:1. Compute price and usage variances for direct materials.2. Compute the direct labor rate and labor efficiency variances.3. Compute the fixed overhead spending and volume variances. Intercept the volume variance.4. Compute the variable overhead spending and efficiency varainces.5. Prepare journal entries for the following:a. The purchase of direct materialsb. The issurance of direct materials to production (Work in Process)c. The addition of direct labor to Work in Processd. The addition of overhead to Work in Processe. The incurrence of actual overhead costsf. Closing out of variances to Cost of Goods Sold