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Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.3 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: 143,000. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. There are no beginning or ending inventories of direct materials. Direct labor: 11,300 hours at $17.30. Required: Compute price and usage variances for direct materials.

Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.3 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: 143,000. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. There are no beginning or ending inventories of direct materials. Direct labor: 11,300 hours at $17.30. Required: Compute price and usage variances for direct materials.

FINANCIAL ACCOUNTING
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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Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.3 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: 143,000. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. There are no beginning or ending inventories of direct materials. Direct labor: 11,300 hours at $17.30. Required: Compute price and usage variances for direct materials.
Transcribed Image Text:Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one bar of the candy: Direct materials (6.3 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: 143,000. Ounces of direct materials purchased: 901,200 ounces at $0.21 per ounce. There are no beginning or ending inventories of direct materials. Direct labor: 11,300 hours at $17.30. Required: Compute price and usage variances for direct materials.
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