E9-6 (Algo) Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4]Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adornedwith two crystals of various colors. Standard costs follow:SilverCrystalsDirect laborStandard Quantity0.35 ounce6.002.00 hoursStandard Price (Rate)$31.00 per ounce$0.50 crystal$ 20.00 per hoursDuring the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of $66,105.00).Complete this question by entering your answers in the tabs below.Required:1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.2. Calculate Crystal Charm's direct labor variances for the month of January.Direct Material Price VarianceDirect Material Quantity VarianceStandard UnitCostSilver$10.853.0040.00Required 1 Required 2Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.Note: Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance).Crystals Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adornedwith two crystals of various colors. Standard costs follow:SilverCrystalsDirect laborStandard Quantity0.35 ounce6.002.00 hoursStandard Price (Rate)$31.00 per ounce$ 0.50 crystal$ 20.00 per hoursDuring the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of $66,105.00).Required:1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.2. Calculate Crystal Charm's direct labor variances for the month of January.Complete this question by entering your answers in the tabs below.Direct Labor Rate VarianceDirect Labor Efficiency VarianceStandard UnitCost$ 10.853.0040.00Required 1Required 2Calculate Crystal Charm's direct labor variances for the month of January.Note: Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance).< Required 1Required 2 >

Variance analysis is the difference between the standard performance and the actual performance,…

Answered: Crystal Charm Company makes handcrafted…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Imperial Jewelers manufactures and sells a gold bracelet for $407.00. The company’s accounting system says that the unit product cost for this bracelet is $274.00 as shown below: Direct materials $ 148 Direct labor 90 Manufacturing overhead 36 Unit product cost $ 274 The members of a wedding party have approached Imperial Jewelers about buying 26 of these gold bracelets for the discounted price of $367.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $13. Imperial Jewelers would also have to buy a special tool for $456 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $14.00 of the…
Genuine Spice Inc. began operations on January 1 of the current year. The company produces 8-ounce bottles of hand and body lotion called Eternal Beauty. The lotion is sold wholesale in 12-bottle cases for $100 per case. There is a selling commission of $20 per case. The January direct materials, direct labor, and factory overhead costs are as follows: Products CostBehavior Units per Case Cost per Unit Direct Materials Cost per Case Cream base Variable 100 ozs. $0.02 $2.00 Natural oils Variable 30 ozs. 0.30 9.00 Bottle (8-oz.) Variable 12 bottles 0.50 6.00 Total direct materials cost per case $17.00 Department Cost Behavior Time per Case Labor Rate per Hour Direct Labor Cost per Case Mixing Variable 20 min. $18.00 $6.00 Filling Variable 5 min. 14.40 1.20 Total direct labor cost per case 25 min. $7.20 Line Item Description Cost Behavior Total Cost Utilities Mixed $600 Facility lease Fixed…
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company’s accounting system says that the unit product cost for this bracelet is $257.00 as shown below: Direct materials $ 142 Direct labor 84 Manufacturing overhead 31 Unit product cost $ 257 The members of a wedding party have approached Imperial Jewelers about buying 19 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $11. Imperial Jewelers would also have to buy a special tool for $469 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $12.00 of the…
Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says that the unit product cost for this bracelet is $268.00 as shown below: Direct materials. Direct labor Manufacturing overhead Unit product cost $ 140 89 39 $ 268 The members of a wedding party have approached Imperial Jewelers about buying 17 of these gold bracelets for the discounted price of $366.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $12. Imperial Jewelers would also have to buy a special tool for $467 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $13.00 of the overhead is…
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Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.2 hours per toy at $6.90 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Direct materials. 73,000 microns were purchased at a cost of $0.33 per micron. 28,375 of these microns were still in inventory at the end of the month. Direct labor. 6,420 direct labor-hours were worked at a cost of $47,508. Required: 1. Compute the following variances for July: Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity…
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company's accounting system says the unit product cost for this bracelet is $264.00, as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $146 86 32 $ 264 A wedding party has approached Imperial Jewelers about buying 28 gold bracelets for the discounted price of $362.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $6. Imperial Jewelers would have to buy a special tool for $454 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $7.00 of the overhead is variable with respect to the number of bracelets produced. The company also…
Imperial Jewelers manufactures and sells a gold bracelet for $402.00. The company's accounting system says the unit product cost for this bracelet is $270.00, as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $ 150 84 36 $ 270 A wedding party has approached Imperial Jewelers about buying 25 gold bracelets for the discounted price of $362.00 each. The wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $5. Imperial Jewelers would have to buy a special tool for $458 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order, Imperial Jewelers determined most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $6.00 of the overhead is variable with respect to the number of bracelets produced. The company also…
Assume that Pearle Vision uses standard costs to control the materials in its made-to-order sunglasses. The standards call for 2 ounces of material for each pair of lenses. The standard cost per ounce of material is $17.00. During July, the Santa Clara location produced 5,200 pairs of sunglasses and used 9,900 ounces of materials. The cost of the materials during July was $17.25 per ounce, and there were no beginning or ending inventories. Required a. Determine the flexible budget materials cost for the completion of the 5,200 pairs of glasses. $Answer b. Determine the actual materials cost incurred for the completion of the 5,200 pairs of glasses and compute the total materials variance. $Answer 0 actual materials cost $Answer 0 Answer F total materials variance c. How much of the total variance was related to the price paid to purchase the materials? $Answer 2,475 Answer U d. How much of the difference between the answers to requirements (a) and (b) was related to the quantity of…
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Bandar Industries manufactures sporting equipment. One of the company's products is a football helmet that requires special plastic During the quarter ending June 30, the company manufactured 3,300 helmets, using 2,475 klograms of plastic. The plastic cost the company $18,810. According to the standard cost card, each helmet should require 0.68 kilograms of plastic, at a cost of $8.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,300 helmets? 2. What is the standard materials cost allowed (SQ - SP) to make 3,300 helmets? 3. What is the materials spending variance? 4. What is the materials price varlance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediote calculations.) 1. Standard quantity of kilograms allowed…
Imperial Jewelers manufactures and sells a gold bracelet for $401.00. The company's accounting system says that the unit product cost for this bracelet is $252.00 as shown below: Direct materials Direct labor Manufacturing overhead Unit product cost $ 140 80 32 $ 252 The members of a wedding party have approached Imperial Jewelers about buying 14 of these gold bracelets for the discounted price of $361.00 each. The members of the wedding party would like special filigree applied to the bracelets that would increase the direct materials cost per bracelet by $7. Imperial Jewelers would also have to buy a special tool for $469 to apply the filigree to the bracelets. The special tool would have no other use once the special order is completed. To analyze this special order opportunity, Imperial Jewelers has determined that most of its manufacturing overhead is fixed and unaffected by variations in how much jewelry is produced in any given period. However, $8.00 of the overhead is variable…

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