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 $(6\mathrm{.}20$ oz$.$ @ $$0\mathrm{.}20)$ $$1\mathrm{.}24$

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

Standard prime cost $$2\mathrm{.}68$

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

Bars produced: $142,000.$

Ounces of direct materials purchased: $880,700$ ounces at $$0\mathrm{.}21$ per ounce.

There are no beginning or ending inventories of direct materials.

Direct labor: $11,220$ hours at $$17\mathrm{.}20.$

Required:

$1.$ 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.