E9-6 (Algo) Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4]Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adornedwith two crystals of various colors. Standard costs follow:SilverCrystalsDirect laborStandard Quantity0.35 ounce6.002.00 hoursStandard Price (Rate)$31.00 per ounce$0.50 crystal$ 20.00 per hoursDuring the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of $66,105.00).Complete this question by entering your answers in the tabs below.Required:1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.2. Calculate Crystal Charm's direct labor variances for the month of January.Direct Material Price VarianceDirect Material Quantity VarianceStandard UnitCostSilver$10.853.0040.00Required 1 Required 2Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.Note: Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero variance).Crystals Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adornedwith two crystals of various colors. Standard costs follow:SilverCrystalsDirect laborStandard Quantity0.35 ounce6.002.00 hoursStandard Price (Rate)$31.00 per ounce$ 0.50 crystal$ 20.00 per hoursDuring the month of January, Crystal Charm made 1,620 charms. The company used 542 ounces of silver (total cost of $17,344) and9,770 crystals (total cost of $4,689.60), and paid for 3,390 actual direct labor hours (cost of $66,105.00).Required:1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January.2. Calculate Crystal Charm's direct labor variances for the month of January.Complete this question by entering your answers in the tabs below.Direct Labor Rate VarianceDirect Labor Efficiency VarianceStandard UnitCost$ 10.853.0040.00Required 1Required 2Calculate Crystal Charm's direct labor variances for the month of January.Note: Round your intermediate calculations and final answers to 2 decimal places. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for no effect (1.e., zero variance).< Required 1Required 2 >

Variance analysis is the difference between the standard performance and the actual performance,…

Answered: Crystal Charm Company makes handcrafted…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter13: Budgeting And Standard Costs

Section: Chapter Questions

Problem 13.5P: Direct materials and direct labor, variance analysis; factory overhead cost variance analysis Route...

See similar textbooks

Similar questions

USD Inc. has established the following standard cost per unit: Although 10,000 units were budgeted, 12,000 units were produced. The Purchasing department bought 50,000 lb of materials at a cost of $237,500. Actual pounds of materials used were 46,000. Direct labor cost was $287,500 for 25,000 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
Carlo Lee Corp. has established the following standard cost per unit: Although 10,000 units were budgeted, only 8,800 units were produced. The purchasing department bought 55,000 lb of materials at a cost of $123,750. Actual pounds of materials used were 54,305. Direct labor cost was $186,550 for 18,200 hours worked. Required: Make journal entries to record the materials transactions, assuming that the materials price variance was recorded at the time of purchase. Make journal entries to record the labor variances.
At the beginning of the year, Lopez Company had the following standard cost sheet for one of its chemical products: Lopez computes its overhead rates using practical volume, which is 80,000 units. The actual results for the year are as follows: (a) Units produced: 79,600; (b) Direct labor: 158,900 hours at 18.10; (c) FOH: 831,000; and (d) VOH: 112,400. Required: 1. Compute the variable overhead spending and efficiency variances. 2. Compute the fixed overhead spending and volume variances.
Direct materials and direct labor, variance analysis; factory overhead cost variance analysis Route 66 Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 10.000 tires were as follows: Instructions Determine (a) the price variance, quantity variance, and total direct materials cost variance; (b) the rale variance, time variance, and total direct labor cost variance; and (c) Appendix: variable factory overhead controllable variance, the fixed factory overhead volume variance, and total factory overhead cost variance.
Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit): Sitka Industries made 3,000 ladders in July and used 8,800 pounds of material to make these units. Smith Industries bought 15,500 pounds of material in the current period. There was a $250 unfavorable direct materials price variance. A. How much in total did Sitka pay for the 15,500 pounds? B. What is the direct materials quantity variance? C. What is the total direct material cost variance? D. What ii 9,500 pounds were used to make these ladders, what would be the direct materials quantity variance? E. It there was a $340 favorable direct materials price variance, how much did Sitka pay for the 15,500 pounds of material?
ABC Inc. spent a total of $48,000 on factory overhead. Of this, $28,000 was fixed overhead. ABC Inc. had budgeted $27,000 for fixed overhead. Actual machine hours were 5.000. Standard hours for units made were 4,800. The standard variable overhead rate was $4.10. What is the variable overhead rate variance?
Ed Co. manufactures two types of O rings, large and small. Both rings use the same material but require different amounts. Standard materials for both are shown. At the beginning of the month, Edve Co. bought 25,000 feet of rubber for $6.875. The company made 3,000 large O rings and 4,000 small O rings. The company used 14,500 feet of rubber. A. What are the direct materials price variance, the direct materials quantity variance, and the total direct materials cost variance? B. If they bought 10,000 connectors costing $310, what would the direct materials price variance be for the connectors? C. If there was an unfavorable direct materials price variance of $125, how much did they pay per toot for the rubber?
Compute the direct materials cost variance using the 2-way method Shepherd Corporation has the following information given below: Direct materials : 5 lbs @ P5.00 Direct labor : 4 hrs @ P9.00 Variable overhead : 4 hrs. @ P3.00 Fixed overhead: 4 hrs. @ P4.00 The company has a normal capacity of 150,000 units and a budgeted capacity of 140,000 units. Actual data taken from the production records in the month of November, 2020 are as follows: Actual production 135,000 units Materials purchases (600,000 x P4.15) P2,490,000 Materials used 550,000 lbs. Payroll incurred (400,000 x P9.00) 3,600,000 Factory overhead: Fixed P1,500,000
ntegrity Company uses standard costing for each specialized product. The following information is available:Standards:Material- 3.0 feet per unit @ P42.00 per footLabor- 2.5 hours per unit @ P75.00 per hourActual:Production- 2,750 units produced during the monthMaterial- 8,700 feet used; 9,000 feet purchased @ P45.00 per footLabor- 7,000 direct labor hours @ P79.00 per hourHow much is the labor rate variance? Choices: P28,000 U P27,500 F P28,000 U P27,500 U
P10-1A Calculate Variances The following summary data relate to the operations of Dobson Company for April, during which 9,000 finished units were produced. Normal monthly capacity was 20,000 direct labor hours. Standard Unit Costs Total Actual Costs Direct materials: Standard (4 lb. @ $2.20/lb.) $8.80 Actual (38,000 lb. @ $2.00/lb.) $76,000 Direct labor: Standard (2 hr. @ $11.00/hr.) 22.00 Actual (18,500 hr. @ $11.30/hr.) 209,050 Variable overhead: Standard (2 hr. @ $3.00/hr.) 6.00 Actual 54,900 Total $36.80 $339,950 Required…
E10-2A Materials and Labor Variances The following actual and standard cost data for direct materials and direct labor relate to Hadley Company's production of 2,000 units of a product: Actual costs Standard costs Direct materials 3,900 lb. @ $5.20 4,000 lb. @ $5.10 Direct labor 6,200 hr. @ $8.40 6,000 hr. @ $8.60 Determine the following variances: a. Materials price b. Materials efficiency c. Labor rate d. Labor efficiency
E8-17 Calculating factory overhead: two variances Munoz Manufacturing Co. normally produces 11,000units of product X each month. Each unit requires 2.5hours of direct labor, and factory overhead is applied on a direct labor hour basis. Fixed costs and variable costs in factory overhead at the normal capacity are $2.25and $1.25per direct labor hour, respectively. Cost and production data for May follow: Production for the month. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.500units Direct labor hours used . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..19,000hours Factory overhead incurred for: Variable costs . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . .. $29,000 Fixed costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,000 a. Calculate the flexible-budget variance. b. Calculate the production-volume variance. c. Was the total factory overhead under-or overapplied? By what amount?

SEE MORE QUESTIONS

Recommended textbooks for you

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Survey of Accounting (Accounting I)

Accounting

ISBN:

9781305961883

Author:

Carl Warren

Publisher:

Cengage Learning

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Cost Accounting

Accounting

ISBN:

9781305087408

Author:

Edward J. Vanderbeck, Maria R. Mitchell

Publisher:

Cengage Learning

Managerial Accounting

Accounting

ISBN:

9781337912020

Author:

Carl Warren, Ph.d. Cma William B. Tayler

Publisher:

South-Western College Pub

Financial And Managerial Accounting

Accounting

ISBN:

9781337902663

Author:

WARREN, Carl S.

Publisher:

Cengage Learning,

Managerial Accounting: The Cornerstone of Busines…

Accounting

ISBN:

9781337115773

Author:

Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS