Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow: Silver Crystals Direct labor Standard Quantity 0.25 ounce 6.00 1.50 hours Standard Price (Rate) $26.00 per ounce $ 0.25 crystal $ 16.00 per hours Standard Unit Cost $ 6.50 1.50 24.00 During the month of January, Crystal Charm made 1,600 charms. The company used 375 ounces of silver (total cost of $10,125) and 9,650 crystals (total cost of $2,219.50), and paid for 2,550 actual direct labor hours (cost of $39,525.00). 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.
Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow: Silver Crystals Direct labor Standard Quantity 0.25 ounce 6.00 1.50 hours Standard Price (Rate) $26.00 per ounce $ 0.25 crystal $ 16.00 per hours Standard Unit Cost $ 6.50 1.50 24.00 During the month of January, Crystal Charm made 1,600 charms. The company used 375 ounces of silver (total cost of $10,125) and 9,650 crystals (total cost of $2,219.50), and paid for 2,550 actual direct labor hours (cost of $39,525.00). 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.
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Transcribed Image Text:Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is
adorned with two crystals of various colors. Standard costs follow:
Silver
Crystals
Direct labor
Standard Quantity
0.25 ounce
6.00
1.50 hours
Standard Price (Rate)
$26.00 per ounce
$ 0.25 crystal
$ 16.00 per hours.
Standard Unit
Cost
$ 6.50
1.50
24.00
During the month of January, Crystal Charm made 1,600 charms. The company used 375 ounces of silver (total cost of $10,125)
and 9,650 crystals (total cost of $2,219.50), and paid for 2,550 actual direct labor hours (cost of $39,525.00).
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.
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