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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 | 0.30 | ounce | $ 30.00 | per ounce | $ 9.00 |
Crystals | 5.00 | $ 0.45 | crystal | 2.25 | |
Direct labor | 1.50 | hours | $ 19.00 | per hours | 28.50 |
During the month of January, Crystal Charm made 1,610 charms. The company used 458 ounces of silver (total cost of $14,198) and 8,100 crystals (total cost of $3,483.00), and paid for 2,565 actual direct labor hours (cost of $47,452.50).
Required:
- Calculate Crystal Charms direct materials variances for silver and crystals for the month of January.
- Calculate Crystal Charms direct labor variances for the month of January.
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