Direct Materials and Direct Labor Variances Bemer Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: $0.738 Direct materials (8.2 oz. @ $0.09) Direct labor (0.07 hr. @ $18.00) 1.26 Standard prime cost $1.998 During the first week of operation, the company experienced the following actual results: a. Bars produced: 78,000. b. Ounces of direct materials purchased: 640,000 ounces at $0.084 per ounce. C. There are no beginning or ending inventories of direct materials. d. Direct labor: 5,510 hours at $18. Required: 1. Compute price and usage variances for direct materials. Materials Price Variance Materials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. Labor Rate Variance Labor Efficiency Variance 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank 11 an amount is zero, enter or. Record purchase of materials Record usage of materials lll lll llll lll lll llll Record labor variances