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 $(6\mathrm{.}3$ oz$.$ @ $$0\mathrm{.}20)$ $$1\mathrm{.}26$

Direct labor $(0\mathrm{.}08$ hr$.$ @ $$18\mathrm{.}00)1\mathrm{.}44$

Standard prime cost $$2\mathrm{.}70$

During the first week of operation, the company experienced the following actual results:

Bars produced: $143,000.$

Ounces of direct materials purchased: $901,200$ ounces at $$0\mathrm{.}21$ per ounce.

There are no beginning or ending inventories of direct materials.

Direct labor: $11,300$ hours at $$17\mathrm{.}30.$

Required:

Question Content Area

$1.$ Compute price and usage variances for direct materials.

Materials Price Variance $fill in the blank $8$ed$361$f$75$febf$8$f$\_1$

Materials Usage Variance $fill in the blank $8$ed$361$f$75$febf$8$f$\_3$

$2.$ Compute the rate variance and the efficiency variance for direct labor.

Labor Rate Variance $fill in the blank $8$ed$361$f$75$febf$8$f$\_5$

Labor Efficiency Variance $fill in the blank $8$ed$361$f$75$febf$8$f$\_7$

Question Content Area

$3.$ 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 $"0".$

blankRecord purchase of materialsblankblank

Record usage of materials

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Record labor variances

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