The Geneva Chocolate Company uses standard costs and a flexible budget
to control its manufacture of fine chocolate. The purchasing agent is responsible
for material price variances, and the production manager is responsible for all
other variances. Operating data for the past week are summarized as follows:
1. Finished units produced: 4,000 boxes of chocolates.
2. Direct material: Purchases, 6,400 kilograms of chocolate @ 15.50 Swiss
francs (SF) per kilogram; standard price is SF16 per kilogram. Used,
4,300 kilograms. Standard allowed of 1 kilogram per box.
3. Direct labour. Actual costs, 6,400 hours @ SF30.50, or SF195,200.
Standard allowed per box produced, 1.5 hours. Standard price per
direct labour hour, SF30.
4. Variable manufacturing overhead: Actual costs, SF69,500. Budget formula
is SF10 per standard direct labour hour.
1. Compute the following variances
a. Material purchase price variance
b. Material efficiency variance
c. Direct labour price variance
d. Direct labour efficiency variance
e. Variable manufacturing overhead spending variance
f. Variable manufacturing overhead efficiency variance

2. a. What is the budget allowance for direct labour?
b. Would it be any different if production were 5,000 boxes?