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Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount

Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

Standard Amount per Case
Dark Chocolate Light Chocolate Standard Price per Pound
Cocoa 11 lbs. 8 lbs. $5
Sugar 9 lbs. 13 lbs. 0.6
Standard labor time 0.4 hr. 0.5 hr.

Dark Chocolate Light Chocolate
Planned production 5,000 cases 12,400 cases
Standard labor rate $14 per hr. $14 per hr.

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

Dark Chocolate Light Chocolate
Actual production (cases) 4,800 12,900
Actual Price per Pound Actual Pounds Purchased and Used
Cocoa $5.1 156,800
Sugar 0.55 205,600
Actual Labor Rate Actual Labor Hours Used
Dark chocolate $13.7 per hr. 1,750
Light chocolate 14.3 per hr. 6,610

Required:

Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:

a) Direct materials price variance, direct materials quantity variance, and total variance.

b) Direct labor rate variance, direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero.

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