Zoller Company produces a dark chocolate candy bar. Recently, the company adopted the following standards for one
Question:
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
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".
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen