Question
Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of
Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow:
Standard Quantity | Standard Price (Rate) | Standard Unit Cost | |||||||
Silver | 0.35 | oz. | $ | 31.00 | per oz. | $ | 10.85 | ||
Crystals | 6.00 | $ | 0.50 | crystal | 3.00 | ||||
Direct labor | 2.00 | hrs. | $ | 20.00 | per hr. | 40.00 | |||
During the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and 9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of $66,105.00).
Required:
1. Calculate Crystal Charms direct materials variances for silver and crystals for the month of January.
2. Calculate Crystal Charms direct labor variances for the month of January.
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