EX.09.14ALGO Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy...
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Accounting
EX.09.14ALGO
Direct Materials and Direct Labor Variances Berner Company produces a dark chocolate candy bar. Recently, the company adopted the following standards foc one bar of the candy: During the first week of operation, the company experienced the following actual resuits: a. Bars produced: 144,000 . b. Ounces of direct materials purchased: 1,181,100 ounces at $0.08 per ounce. c. There are no beginning or ending inventories of direct moterials. d. Direct labor: 9,940 hours at $17,20. Required: Instructions for parts 1 and 2 i If a variance is zero, enter " 0" and select "Not applicable" from the drop down box. 1. Compute price and usage varlances for direct materials, Feeseach T. Check My Work 3. Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods 50 id (if immaterial) of prorated among Cost of Goods Sold, Work in Process, and Finished Goods
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