value 2.00 points E9-5 Calculating Direct Materials and Direct Labor Variances [

Question

value 2.00 points E9-5 Calculating Direct Materials and Direct Labor Variances [LO 9-3, 9-4] Crystal Charm Company makes handcrafted silver charms that attach to every such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow: Standard Standar Quantity Standard (Rate) Unt Cost 0.25 oz. $20.00 per oz. siver Crystals Direct labor 200 0.25 per crystal 1.50 hrs. $15.00 per hr. S 5.00 0.50 22.50 During the month of January, Crystal Charm made 1,500 charms. The company used 350 ounces of silver (total cost of $7,350) and 3,050 crystals (total cost of $701.50), and paid for 2.400 actual direct labor hours (cost of $34,800.00). Required: 1. Caloulate Crystal Charm's direct materials variances for silver and crystals for the month of January. (Round your intermediate calculations and final answers to 2 docimal places. Indicate the effoct of each variance by selecting "F" for favorable, "U" for unfavorablc.) Direct Material Price Variance Direct Material Quantty Vaniance 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 Vanance Direct Labor Efficiency Variance

Explanation / Answer

Direct materials price variance: Silver 350 U =7350-(350*20) Crystals 61 F =701.5-(3050*0.25) Direct materials quantity variance: Silver 500 F =20*(350-1500*0.25) Crystals 12.5 U =0.25*(3050-1500*2) Direct labor rate variance 1200 F =34800-(2400*15) Direct labor efficiency variance 2250 U =15*(2400-1500*1.5)

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