9.1.2.3

Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,475 bars) are as follows:

Ingredient	Quantity		Price
Cocoa	390	lbs.	$0.40		per lb.
Sugar	120	lbs.	$0.60		per lb.
Milk	90	gal.	$1.40		per gal.

a. Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent ___$

Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:

Direct labor:	standard rate	$16.00 per hr.
	standard time per unit	4 hrs.
Direct materials (oak):	standard price	$11.00 per bd. ft.
	standard quantity	19 bd. ft.
Variable factory overhead:	standard rate	$2.40 per direct labor hr.
Fixed factory overhead:	standard rate	$0.80 per direct labor hr.

b. Determine the standard cost per dining room table. If required, round your answer to two decimal places $___

The following data relate to the direct materials cost for the production of 2,300 automobile tires:

Actual:	50,400 lbs. at $1.85 per lb.
Standard:	49,400 lbs. at $1.90 per lb.

c. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials Price Variance	$___	Favorable
Direct Materials Quantity Variance	$___	Unfavorable
Total Direct Materials Cost Variance	$___	Favorable