Question
In: Accounting
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the...
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:
- Bars produced: 141,000.
- Ounces of direct materials purchased: 874,500 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 | $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 |
Solutions
ekkarill92 answered 11 months agoRelated Solutions
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the...
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: 142,000.
Ounces of direct materials purchased: 894,900 ounces at $0.21
per ounce.
There are no beginning or ending inventories of...
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the...
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: 145,000.
Ounces of direct materials purchased: 913,800 ounces at $0.21
per ounce.
There are no beginning or ending inventories of...
Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the...
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:
Bars produced: 144,000.
Ounces of direct materials purchased: 893,100 ounces at $0.21 per
ounce.
There are no beginning or ending inventories of...
Candy Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for...
Candy Company produces a dark chocolate candy bar. Recently, the
company adopted the following standards for one bar of the
candy:
Direct Materials (5.5 oz. @ $0.22) $1.21
Direct Labor (0.15 hours @ $10.00) $1.50
Standard Prime Cost $2.71
During the first week of operation, the company experienced the
following actual results:
Bars produced: 150,000.
Ounces of direct materials purchased: 823,600 ounces at $0.23
per ounce.
There are no beginning or ending inventories of direct
materials.
Direct Labor: 23,200 hours...
Direct Materials and Direct Labor Variances
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Direct Labor and Direct Materials Variances, Journal Entries Jameson Company produces paper towels. The company has...
Direct Labor and Direct Materials Variances, Journal Entries
Jameson Company produces paper towels. The company has
established the following direct materials and direct labor
standards for one case of paper towels:
Paper pulp (3 lbs. @ $0.40)
$ 1.20
Labor (2 hrs. @ $12)
24.00
Total prime cost
$25.20
During the first quarter of the year, Jameson produced 50,000
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pounds of paper pulp at $0.38 per pound. Actual direct labor...
Direct Labor and Direct Materials Variances, Journal Entries Jameson Company produces paper towels. The company has...
Direct Labor and Direct Materials Variances, Journal Entries
Jameson Company produces paper towels. The company has
established the following direct materials and direct labor
standards for one case of paper towels:
Paper pulp (3 lbs. @ $0.40)
$ 1.20
Labor (2 hrs. @ $12)
24.00
Total prime cost
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During the first quarter of the year, Jameson produced 50,000
cases of paper towels. The company purchased and used 150,700
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Direct Materials, Direct Labor, and Overhead Variances, Journal Entries Algers Company produces dry fertilizer. At the...
Direct Materials, Direct Labor, and Overhead Variances, Journal
Entries
Algers Company produces dry fertilizer. At the beginning of the
year, Algers had the following standard cost sheet:
Direct materials (5 lbs. @ $2.60)
$13.00
Direct labor (0.75 hr. @ $18.00)
13.50
Fixed overhead (0.75 hr. @ $4.00)
3.00
Variable overhead (0.75 hr. @ $3.00)
2.25
Standard cost per unit
$31.75
Algers computes its overhead rates using practical volume, which
is 54,000 units. The actual results for the year are as...
Direct Materials Usage Variances: Direct Materials Mix and Yield Variances Energy Products Company produces a gasoline...
Direct Materials Usage Variances: Direct Materials Mix and Yield
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Careful controls are required during the production process to
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