Question

O M U NLU Sverildiris that attach to jewelry such as a necklace or bracelet Each charm is adorned with two crystals of various colors. Standard costs follow Silver Crystals Direct labor Standard Standard Price Quantity (Rate) 0.40 oz. $20.00 per oz. 7.00 $ 0.25 crystal 1.50 hrs. $10.00 per hr. Standard Unit Cost $ 8.00 1.75 15. During the month of January, Crystal Charm made 1.630 charms. The company used 617 ounces of silver (total cost of $12.957) and 11,460 crystals (total cost of $2,635.80), and paid for 2,595 actual direct labor hours (cost of $24,652.50). Required: 1. Calculate Crystal Charm's direct materials variances for silver and crystals for the month of January 2. Calculate Crystal Charm's direct labor variances for the month of January Complete this question by entering your answers in the tabs below. Required 1 Required 2 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 for favorable for unfavorable and None" for no effect le. Eero variance).)

Answer 1

Silver Particulars Direct Material | SQ 652 SP 20 AQ 617 | AP 21 Material Price Variance (MPV) = ( SP - AP) AQ >>MPV = 20 - 21 ) * 617 >>MPV = -617.00 Unfavorable Material Quantity Variance (MQV) = ( SQ - AQ) SP >>MQV = 1 652 - 617 ) * 20 >>MQV = 700.00 Favorable Note-1 SQ = Standard Quantity for Actual output SP = Standard Price per Raw material AQ = Actual Quantiity consumed AP = Actual Price per Raw material

Crystals Particulars Direct Material SQ 11410 SP 0.25 AQ 11460 AP 0.23 Material Price Variance (MPV) = ( SP - AP) AQ >>MPV = 1 0.25 - 0.23 ) * 11460 >>MPV = 229.20 Favorable Material Quantity Variance (MQV ) = ( SQ - AQ) SP >>MQV = ( 11410 - 11460) * 0.25 >>MQV = -12.50 Unfavorable Note - 1 SQ = Standard Quantity for Actual output SP = Standard Price per Raw material AQ = Actual Quantiity consumed AP = Actual Price per Raw material

Particulars Direct Labour SH 2445 | SR 10 AHP 2595 AR 9.5 Labour Rate Variance (LrV) = ( SR - AR ) AHP >>LRV = ( 10 - 9.5 ) * 2595 >>LRV = 1298 Favourable Labour Efficiency Variance (LEV) = ( SH - AHW) SR >>LEV = ( 2445 - 2595 ) * 10 >>LEV = -1500 Unfavourable Note-1 SH = Standard Hours per Actual Output SR = Standard Rate per Hour AHP = Actual Hours Paid AR = Actual Rate per Hour.