Question
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of
Direct Materials and Direct Labor Variances
Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy:
Direct materials (6.30 oz. @ $0.20) | $1.26 |
Direct labor (0.08 hr. @ $18.00) | 1.44 |
Standard prime cost | $2.70 |
During the first week of operation, the company experienced the following actual results:
- Bars produced: 141,000.
- Ounces of direct materials purchased: 888,600 ounces at $0.21 per ounce.
- There are no beginning or ending inventories of direct materials.
- Direct labor: 11,140 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 | $ | |
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 or enter "0".
Record purchase of materials | |||
Record usage of materials | |||
Record labor variances |
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