In: Accounting
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:
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 119d03038f8d01d_1 | |
Materials Usage Variance | $fill in the blank 119d03038f8d01d_3 |
2. Compute the rate variance and the efficiency variance for direct labor.
Labor Rate Variance | $fill in the blank 119d03038f8d01d_5 | |
Labor Efficiency Variance | $fill in the blank 119d03038f8d01d_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 72ba570a2fdd001_2 | fill in the blank 72ba570a2fdd001_3 | ||
fill in the blank 72ba570a2fdd001_5 | fill in the blank 72ba570a2fdd001_6 | ||
fill in the blank 72ba570a2fdd001_8 | fill in the blank 72ba570a2fdd001_9 | ||
Record purchase of materials | |||
fill in the blank 72ba570a2fdd001_11 | fill in the blank 72ba570a2fdd001_12 | ||
fill in the blank 72ba570a2fdd001_14 | fill in the blank 72ba570a2fdd001_15 | ||
fill in the blank 72ba570a2fdd001_17 | fill in the blank 72ba570a2fdd001_18 | ||
Record usage of materials | |||
fill in the blank 72ba570a2fdd001_20 | fill in the blank 72ba570a2fdd001_21 | ||
fill in the blank 72ba570a2fdd001_23 | fill in the blank 72ba570a2fdd001_24 | ||
fill in the blank 72ba570a2fdd001_26 | fill in the blank 72ba570a2fdd001_27 | ||
fill in the blank 72ba570a2fdd001_29 | fill in the blank 72ba570a2fdd001_30 | ||
Record labor variances |