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 (6.20 oz. @ $0.20)	$1.24
Direct labor (0.08 hr. @ $18.00)	1.44
Standard prime cost	$2.68

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

1. Bars produced: 145,000.
2. Ounces of direct materials purchased: 899,300 ounces at $0.21 per ounce.
3. There are no beginning or ending inventories of direct materials.
4. Direct labor: 11,460 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	$fill in the blank 7f8270fa7fb400d_1
Materials Usage Variance	$fill in the blank 7f8270fa7fb400d_3

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

Labor Rate Variance	$fill in the blank 7f8270fa7fb400d_5
Labor Efficiency Variance	$fill in the blank 7f8270fa7fb400d_7

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".

		fill in the blank 024266037f8f043_2	fill in the blank 024266037f8f043_3
		fill in the blank 024266037f8f043_5	fill in the blank 024266037f8f043_6
		fill in the blank 024266037f8f043_8	fill in the blank 024266037f8f043_9
	Record purchase of materials
		fill in the blank 024266037f8f043_11	fill in the blank 024266037f8f043_12
		fill in the blank 024266037f8f043_14	fill in the blank 024266037f8f043_15
		fill in the blank 024266037f8f043_17	fill in the blank 024266037f8f043_18
	Record usage of materials
		fill in the blank 024266037f8f043_20	fill in the blank 024266037f8f043_21
		fill in the blank 024266037f8f043_23	fill in the blank 024266037f8f043_24
		fill in the blank 024266037f8f043_26	fill in the blank 024266037f8f043_27
		fill in the blank 024266037f8f043_29	fill in the blank 024266037f8f043_30
	Record labor variances