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 0.65 oz. 5.00 Standard (Rate) $25.00 per oz. $ 0.50 per crystal 2.00 hrs. $15.00 per hr. During the month of January, Crystal Charm made 1,500 charms. The company used 935 ounces of silver (total cost of $24,310) and 7,550 crystals (total cost of $3,624.00), and paid for 3,150 actual direct labor hours (cost of $45,675.00). Standard Unit Cost $16.25 2.50 30.00 Required: 1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January. (Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Material Price Variance Direct Material Quantity Variance Silver Crystals
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 0.65 oz. 5.00 Standard (Rate) $25.00 per oz. $ 0.50 per crystal 2.00 hrs. $15.00 per hr. During the month of January, Crystal Charm made 1,500 charms. The company used 935 ounces of silver (total cost of $24,310) and 7,550 crystals (total cost of $3,624.00), and paid for 3,150 actual direct labor hours (cost of $45,675.00). Standard Unit Cost $16.25 2.50 30.00 Required: 1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January. (Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.) Direct Material Price Variance Direct Material Quantity Variance Silver Crystals
Chapter7: Budgeting
Section: Chapter Questions
Problem 1PA: Lens Junction sells lenses for $45 each and is estimating sales of 15,000 units in January and...
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Question
![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
0.65 oz.
5.00
Standard (Rate)
$25.00 per oz.
$ 0.50 per crystal
2.00 hrs. $15.00 per hr.
During the month of January, Crystal Charm made 1,500 charms. The company used 935 ounces of silver (total cost of $24,310) and 7,550 crystals (total cost of $3,624.00), and paid for
3,150 actual direct labor hours (cost of $45,675.00).
Standard
Unit Cost
$16.25
2.50
30.00
Required:
1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January. (Round your intermediate calculations and final answers to 2 decimal places.
Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
Direct Material Price Variance
Direct Material Quantity Variance
Silver
Crystals](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44898b61-7c2e-425a-ad3f-5fd9ca6ecc5d%2Fe434d51a-cde2-4689-b99e-f1e9cdbd4861%2F63r4o38_processed.jpeg&w=3840&q=75)
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
0.65 oz.
5.00
Standard (Rate)
$25.00 per oz.
$ 0.50 per crystal
2.00 hrs. $15.00 per hr.
During the month of January, Crystal Charm made 1,500 charms. The company used 935 ounces of silver (total cost of $24,310) and 7,550 crystals (total cost of $3,624.00), and paid for
3,150 actual direct labor hours (cost of $45,675.00).
Standard
Unit Cost
$16.25
2.50
30.00
Required:
1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January. (Round your intermediate calculations and final answers to 2 decimal places.
Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable.)
Direct Material Price Variance
Direct Material Quantity Variance
Silver
Crystals
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