See screenshots for needed answersZoller 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)$1.26Direct labor (0.08 hr. @ $18.00)1.44Standard prime cost$2.70During the first week of operation, the company experienced the following actual results:Bars produced: 144,000.Ounces of direct materials purchased: 907,500 ounces at $0.21 per ounce.There are no beginning or ending inventories of direct materials.Direct labor: 11,380 hours at $17.20. 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) $1.26Direct labor (0.08 hr. @ $18.00)1.44Standard prime cost$2.70During the first week of operation, the company experienced the following actual results:a. Bars produced: 144,000.b. Ounces of direct materials purchased: 907,500 ounces at $0.21 per ounce.c. There are no beginning or ending inventories of direct materials.d. Direct labor: 11,380 hours at $17.20.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 VarianceMaterials Usage Variance2. Compute the rate variance and the efficiency variance for direct labor.Labor Rate VarianceLabor Efficiency Variance3. 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". Materials Usage Variance2. Compute the rate variance and the efficiency variance for direct labor.Labor Rate VarianceLabor Efficiency Variance3. 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".Record purchase of materialsRecord usage of materialsRecord labor variances

1. MATERIAL PRICE VARIANCE = (STANDARD PRICE - ACTUAL PRICE) x ACTUAL QTY…

Answered: Zoller Company produces a dark…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

See screenshots for needed answers

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: 144,000.
Ounces of direct materials purchased: 907,500 ounces at $0.21 per ounce.
There are no beginning or ending inventories of direct materials.
Direct labor: 11,380 hours at $17.20.

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:
a. Bars produced: 144,000.
b. Ounces of direct materials purchased: 907,500 ounces at $0.21 per ounce.
c. There are no beginning or ending inventories of direct materials.
d. Direct labor: 11,380 hours at $17.20.
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
Materials Usage Variance
2. Compute the rate variance and the efficiency variance for direct labor.
Labor Rate Variance
Labor Efficiency Variance
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".

Materials Usage Variance
2. Compute the rate variance and the efficiency variance for direct labor.
Labor Rate Variance
Labor Efficiency Variance
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".
Record purchase of materials
Record usage of materials
Record labor variances

Definition Definition System of assigning an estimated cost to the product (instead of the actual cost) so that the product cost can be determined well in advance and the pricing of the product can be done on time. Since the actual cost cannot be predicted at the initial stage of the production process, the estimated cost is recorded in the books. Any deviation of the estimated cost of the actual cost is adjusted in the books at the end of the period.

Expert Solution