Question

please show your work.

Problem 4(Supplemental Problem #1) - Compute materials and labor Zoller Company produces a dark chocolate candy bar. Recently, the compe of candy: Fials and labor variances . Recently, the company adopted the following standards for one bar Direct materials (6.3 oz. @ $0.20) Direct labor (0.08 hr. a $18.00) Standard prime cost $ $ 1.26 1.44 2.70 During the first week of operation, the company experienced the following actua a. Bars produced: 143.000 b. Ounces of direct materials purchased: 901,200 ounces at $0.21 per Ounce. c. There are no beginning or ending inventories of direct materials. d. Direct labor: 11,300 hours at $17.30. Required: (circle For U to indicate whether the wariance is favorable or unfavorable) a. Compute the materials price variance: For U b. Compute the materials quantity usage variance: For U c. Compute the total materials variance: For U d. Compute the labor rate variance: For U e. Compute the labor efficiency variance: _For U f. Compute the total labor variance: For U ***You must show your work to receive credit ***

Answer 1

a. Material price variance :

Formula : (Standard rate - actual rate )* Actual quantity

(0.2*0.21)901200

=9012(U)

b. Material quantity usage variance:

Formula : (Standard quantity - actual quantity ) *Standard rate

= (901186-901200) * 0.2

=2.8(U)

standard quantity for actual output:

standard quantity of material used for 1 unit * actual quantity of units produced

6.302 * 143000 = 901186

c. Total material cost variance :

Formula: (std rate * std quantity) - (actual rate * actual quantity)

(0.2*901186) - (0.21*901200)

180237.2 - 189252

= 9014.8

d. Labor rate variance :

Formula : (Std rate - actual rate) * actual hours

(18-17.3)11300

7910(F)