Crystal Charm Company makes handcrafted silver charms that attach to jewelry suc

Question

Crystal Charm Company makes handcrafted silver charms that attach to jewelry such as a necklace or bracelet. Each charm is adorned with two crystals of various colors. Standard costs follow: Standard Quantity 0.30 oz. $30.00 per oz. 5.00 1.50 hrs. $19.00 per hr Standard Unit Cost Standard (Rate) Silver Crystals Direct labor $ 9.00 S 0.45 per crystal 2.25 28.50 During the month of January, Crystal Charm made 1,610 charms. The company used 458 ounces of silver (total cost of $14,198) and 8,100 crystals (total cost of $3,483.00), and paid for 2,565 actual direct labor hours (cost of $47,452.50) Required 1. Calculate Crystal Charm's direct materials variances for silver and crystals 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.) Silver Crystals Direct Material Price Variance Direct Material Quantity Variance 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 Variance Direct Labor Efficiency Variance

Explanation / Answer

Silver Direct material price variance (actual price - standard price)*AQ purchased (14,198     - 458*30) 458 U Crystals Direct material price variance (actual price - standard price)*AQ purchased (3,483     - 8,100*.45) 162 F Direct material Quantity variance (Actual qty - standard qty allowed)*standard rate (458    - 1610*.30)*30 750 F Crystals (Actual qty - standard qty allowed)*standard rate (8,100   - 1610*5)*.45 22.5 U Silver Crystals Direct material price variance 458U 162F Direct material quantity variance 750F 22.5U direct labor rate variance (actual rate - standard rate)*actual hours (47,452.50   - 2,565*19) 1282.5 F direct labor Efficiency variance (actual hours - standard hours)*standard rate (2,565            - 1610*1.5)*19 2850 U Direct labor rate variance 1,282.5 F Direct labor Efficiency variance 2,850 U

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