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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 0.25 ounce $ 20.00 per ounce $ 5.00
Crystals 2 $ 0.25 crystal 0.50
Direct labor 1.5 hours $ 15.00 per hours 22.50

During the month of January, Crystal Charm made 1,800 charms. The company used 420 ounces of silver (total cost of $9,240) and 3,650 crystals (total cost of $803), and paid for 2,880 actual direct labor hours (cost of $42,480).

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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