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. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 9,870 hours at $17.30. Required: Materials Price Variance Materials Usage Variance 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. $0.75 Labor Rate Variance 1.26 Labor Efficiency Variance $2.01 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 standards for one bar of the candy: During the first wingk 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. 2. Compute the rate variance and the efficiency variance for direct labor: Lebor Rate Variance Leber 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