Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.30

image text in transcribedimage text in transcribed

Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.30 oz. @ $0.09) Direct labor (0.07 hr. @ $18.00) Standard prime cost $0.75 1.26 $2.01 During the first week of operation, the company experienced the following actual results: a. Bars produced: 144,000. b. Ounces of direct materials purchased: 1,195,500 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 9,940 hours at $17.30, Required: Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance Materials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance Labor, Efficiency Variance 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial and Managerial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

12th edition

978-1133952428, 1285078578, 1133952429, 978-1285078571

More Books

Students also viewed these Accounting questions

Question

the term "ethics" refers to

Answered: 1 week ago