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 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. Materials Price Variance $0.75 c. There are no beginning or ending inventories of direct materials. d. Direct labor: 9,870 hours at $17.30. Required: Materials Usage Variance 1.26 Instructions for parts 1 and 2: If a variance is zero, enter "0" and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. $2.01 Labor Rate Variance 2. Compute the rate variance and the efficiency variance for direct labor.

Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following stand ard for one bar of the cand 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. Required: Instructions for parts 1 and 2: If a variance is zero, enter " 0 " and select "Not applicable" from the drop down box. 1. Compute price and usage variances for direct materials. Materials Price Variance Moterials Usage Variance 2. Compute the rate variance and the efficiency variance for direct labor. 3. Prepare the journal entries associated with direct materials and direct labor. If an amount box does not require an entry, leave it blank