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Direct Materials and Direct Labor Variances

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:

1. Bars produced: 141,000.
2. Ounces of direct materials purchased: 888,600 ounces at $0.21 per ounce.
3. There are no beginning or ending inventories of direct materials.
4. Direct labor: 11,140 hours at $17.30.

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	$fill in the blank 1d84e4fc304301a_1
Materials Usage Variance	$fill in the blank 1d84e4fc304301a_3

2. Compute the rate variance and the efficiency variance for direct labor.

Labor Rate Variance	$fill in the blank 1d84e4fc304301a_5
Labor Efficiency Variance	$fill in the blank 1d84e4fc304301a_7

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".

		fill in the blank 5ab993004fb1033_2	fill in the blank 5ab993004fb1033_3
		fill in the blank 5ab993004fb1033_5	fill in the blank 5ab993004fb1033_6
		fill in the blank 5ab993004fb1033_8	fill in the blank 5ab993004fb1033_9
	Record purchase of materials
		fill in the blank 5ab993004fb1033_11	fill in the blank 5ab993004fb1033_12
		fill in the blank 5ab993004fb1033_14	fill in the blank 5ab993004fb1033_15
		fill in the blank 5ab993004fb1033_17	fill in the blank 5ab993004fb1033_18
	Record usage of materials
		fill in the blank 5ab993004fb1033_20	fill in the blank 5ab993004fb1033_21
		fill in the blank 5ab993004fb1033_23	fill in the blank 5ab993004fb1033_24
		fill in the blank 5ab993004fb1033_26	fill in the blank 5ab993004fb1033_27
		fill in the blank 5ab993004fb1033_29	fill in the blank 5ab993004fb1033_30
	Record labor variances

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