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Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs 8 lbs $7 25 Sugar 10 lbs 14 lbs. 1.40 Standard labor time

Standard Amount per Case
  Dark Chocolate Light Chocolate Standard Price per Pound
Cocoa 12 lbs.   8 lbs.   $7.25  
Sugar 10 lbs.   14 lbs.   1.40  
Standard labor time 0.50 hr.   0.60 hr.      

 

  Dark Chocolate Light Chocolate
Planned production 4,700 cases   11,000 cases  
Standard labor rate $15.50 per hr.   $15.50 per hr.  

I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results:

  Dark Chocolate Light Chocolate
Actual production (cases) 5,000 10,000
  Actual Price per Pound Actual Pounds Purchased and Used
Cocoa $7.33   140,300  
Sugar 1.35   188,000  
  Actual Labor Rate Actual Labor Hours Used
Dark chocolate $15.25 per hr.   2,360  
Light chocolate 15.80 per hr.   6,120  

Required:

1. Prepare the following variance analyses for both chocolates and the total, based on the actual results and production levels at the end of the budget year: Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

  1. Direct materials price variance, direct materials quantity variance, and total variance.
  2. Direct labor rate variance, direct labor time variance, and total variance.

 

a. Direct materials price variance $  
  Direct materials quantity variance $  
  Total direct materials cost variance $  
         
b. Direct labor rate variance $  
  Direct labor time variance $  
  Total direct labor cost variance $

Jun 25 2020 Read more Less More

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