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)	$0.75
Direct labor (0.09 hr. @ $18.00)	1.62
Standard prime cost	$2.37

During the first week of operation, the company experienced the following actual results:

1. Bars produced: 141,000.
2. Ounces of direct materials purchased: 1,170,600 ounces at $0.08 per ounce.
3. There are no beginning or ending inventories of direct materials.
4. Direct labor: 12,550 hours at $17.20.

Required:

Question Content Area

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	$fill in the blank 7bd1b4035041fca_1	FavorableUnfavorableNot applicableFavorable
Materials Usage Variance	$fill in the blank 7bd1b4035041fca_3	FavorableUnfavorableNot applicableUnfavorable

2. Compute the rate variance and the efficiency variance for direct labor.

Labor Rate Variance	$fill in the blank 7bd1b4035041fca_5	FavorableUnfavorableNot applicableFavorable
Labor Efficiency Variance	$fill in the blank 7bd1b4035041fca_7	FavorableUnfavorableNot applicableFavorable

Question Content Area

3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank.

blank	Accounts PayableCashDirect Labor Efficiency VarianceDirect Materials Usage VarianceMaterialsWork in ProcessMaterials	Materials	Materials
	Accounts PayableDirect Labor Efficiency VarianceDirect Materials Price VarianceDirect Materials Usage VarianceWages PayableWork in ProcessDirect Materials Price Variance	Direct Materials Price Variance	Direct Materials Price Variance
	Accounts PayableCashDirect Labor Efficiency VarianceDirect Materials Usage VarianceMaterialsWages PayableAccounts Payable	Accounts Payable	Accounts Payable
	Record purchase of materials
blank	CashDirect Labor Efficiency VarianceDirect Materials Price VarianceMaterialsWages PayableWork in ProcessWork in Process	Work in Process	Work in Process
	Accounts PayableDirect Labor Efficiency VarianceDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsWages PayableDirect Materials Usage Variance	Direct Materials Usage Variance	Direct Materials Usage Variance
	Accounts PayableDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsWages PayableWork in ProcessMaterials	Materials	Materials
	Record usage of materials
blank	Accounts PayableDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsWages PayableWork in ProcessWork in Process	Work in Process	Work in Process
	Accounts PayableCashDirect Labor Rate VarianceDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsDirect Labor Rate Variance	Direct Labor Rate Variance	Direct Labor Rate Variance
	Accounts PayableCashDirect Labor Efficiency VarianceDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsDirect Labor Efficiency Variance	Direct Labor Efficiency Variance	Direct Labor Efficiency Variance
	Accounts PayableDirect Materials Price VarianceDirect Materials Usage VarianceMaterialsWages PayableWages ExpenseWages Payable	Wages Payable	Wages Payable
	Record labor variances