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3) Vienna Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts: Standard quantity of sugar
3) Vienna Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts: Standard quantity of sugar (kilograms) .100 Standard cost per kilogram of sugar $1.90 Standard direct labour hours per batch of fudge 2.0 $18.00 Standard direct labour cost per hour Switzer Chocolate Company produced 400 batches of fudge in the most recent month. Actual costs and usage levels were as follows: Actual kilograms of sugar purchased 50 Actual kilograms of sugar used per batch of fudge 39.60 Actual cost per kilogram of sugar $2.10 Actual direct labour hours per batch of fudge Actual direct labour cost per hour 1.8 $17.50 Required: a. Calculate the total material input price variance. b. Calculate the total material efficiency variance. c. Calculate the total labour rate variance. d. Calculate the total labour efficiency variance. e. Explain why the variances occurred
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