Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (8.30 oz. @ $0.09) Direct labor (0.07 hr. @$18.00) Standard prime cost $0.75 1.26 $2.01 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 1,187,200 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 9,870 hours at $17.30.