Exercise 9.14 Direct Materials and Direct Labor VariancesOBJECTIVE 3Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the fol-lowing standards for one bar of the candy:Direct materials (6.3 oz. @ $0.20)Direct labor (0.08 hr. @ $18.00)Standard prime cost$1.261.44$2.70During the first week of operation, the company experienced the following actual results:Bars produced: 143,000.b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce.c. There are no beginning or ending inventories of direct materials.d. Direct labor: 11,300 hours at $17.30.а.Required:1. Compute price and usage variances for direct materials.2. Compute the rate variance and the efficiency variance for direct labor.3. Prepare the journal entries associated with direct materials and direct labor.

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Description: Exercise 9.14 Direct Materials and Direct Labor VariancesOBJECTIVE 3Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the fol-lowing standards for one bar of the candy:Direct materials (6.3 oz. @ $0.20)Direct labor (0

Direct Material Price Variance = ( Standard price - Actual Price ) x Actual Quantity Direct Material…

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Exercise 9.14 Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the fol- lowing standards for one bar of the candy: Direct materials (6.3 oz. @ $0.20) Direct labor (0.08 hr. @ $18.00) Standard prime cost $1.26 1.44 $2.70 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 11,300 hours at $17.30. Required: 1. Compute price and usage variances for direct materials. 2. Compute the rate variance and the efficiency variance for direct labor. 3. Prepare the journal entries associated with direct materials and direct labor.

Exercise 9.14 Direct Materials and Direct Labor Variances Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the fol- lowing standards for one bar of the candy: Direct materials (6.3 oz. @ $0.20) Direct labor (0.08 hr. @ $18.00) Standard prime cost $1.26 1.44 $2.70 During the first week of operation, the company experienced the following actual results: a. Bars produced: 143,000. b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 11,300 hours at $17.30. Required: 1. Compute price and usage variances for direct materials. 2. Compute the rate variance and the efficiency variance for direct labor. 3. Prepare the journal entries associated with direct materials and direct labor.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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