E9-5 Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Cryst
ID: 2519042 • Letter: E
Question
E9-5 Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Crystal Charm Company makes handcrafted siliver charms that atach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow Standard Standard Standard (Rate) Cost Unit $10.85 Silver Crysta's Direct labor 0.35 oz. $31.00 per oz. 6.00 0.50 per crystal 2.00 hrs. $20.00 per hr. 3.00 40.00 During the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and 9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of S66,105.00). Required: 1. Calculate Crystal Charm's direct materials variances for slver 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.) Silver Crystals Direct Material Price Variance Direct Material Quantity Variance 2. Calculate Crystal Charm's direct labor variances 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 Labor Rate Variance Direct Labor Efficiency VarianceExplanation / Answer
Answers
For Silver
Material Price Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Quantity
(
$ 31.00
-
$ 32.00
)
x
542
-542
Variance
542
Unfavourable-U
Material Quantity Variance
(
Standard Quantity
-
Actual Quantity
)
x
Standard Rate
(
567
-
542
)
x
$ 31.00
775
Variance
775
Favourable-F
For Crystal
Material Price Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Quantity
(
$ 0.50
-
$ 0.48
)
x
9770
195.4
Variance
195.4
Favourable-F
Material Quantity Variance
(
Standard Quantity
-
Actual Quantity
)
x
Standard Rate
(
9720
-
9770
)
x
$ 0.50
-25
Variance
25
Unfavourable-U
Labor Rate Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Labor Hours
(
$ 20.00
-
$ 19.50
)
x
3390
1695
Variance
1695
Favourable-F
Labour Efficiency Variance
(
Standard Hours
-
Actual Hours
)
x
Standard Rate
(
3240
-
3390
)
x
$ 20.00
-3000
Variance
3000
Unfavourable-U
Material Price Variance
(
Standard Rate
-
Actual Rate
)
x
Actual Quantity
(
$ 31.00
-
$ 32.00
)
x
542
-542
Variance
542
Unfavourable-U
Material Quantity Variance
(
Standard Quantity
-
Actual Quantity
)
x
Standard Rate
(
567
-
542
)
x
$ 31.00
775
Variance
775
Favourable-F
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