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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 | 0.35 | ounce | $ 22.00 | per ounce | $ 7.70 |
Crystals | 4.00 | $ 0.35 | crystal | 1.40 | |
Direct labor | 1.50 | hours | $ 11.00 | per hours | 16.50 |
During the month of January, Crystal Charm made 1,520 charms. The company used 507 ounces of silver (total cost of $11,661) and 6,130 crystals (total cost of $2,022.90), and paid for 2,430 actual direct labor hours (cost of $25,515.00).
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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