Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Can you please show work so I can understand how to do this problem. Thank you Standard Amount per Case Dark Chocolate Light Chocolate Standard

image text in transcribed

image text in transcribed

Can you please show work so I can understand how to do this problem. Thank you

Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 10 lbs. 7 lbs. $4.70 Sugar 8 lbs. 12 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,500 cases 13,700 cases Standard labor rate $14.50 per hr. $14.50 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) 5,200 14,200 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $4.80 152,200 Sugar 0.55 206,700 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.20 per hr. 1,890 7,280 Light chocolate 14.80 per hr. 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: 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 Direct materials price variance Unfavorable Direct materials quantity variance $ Unfavorable Unfavorable Total direct materials cost variance $ Cocoa 54.80 0.55 152,200 206,700 Sugar Actual Labor Rate Actual Labor Hours Used Dark chocolate 1,890 $14.20 per hr 14.80 per hr. 7,280 Light chocolate 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: 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. Direct materials price variance Unfavorable Direct materials quantity variance Unfavorable Total direct materials cost variance $ Unfavorable b. Direct labor rate variance Direct labor time variance Total direct labor cost variance $ 2. The variance analyses should based on the amounts at volumes. The budget must flex with the volume changes. If the as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the can be separated from efficiency and price variances. volume is different from the planned volume, production. In this way, spending from volume changes

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Accounting Vol 1

Authors: Dr S. Kr. Paul, Prof. Chandrani Paul

1st Edition

164725146X, 9781647251468

More Books

Students also viewed these Accounting questions

Question

Describe the major barriers to the use of positive reinforcement.

Answered: 1 week ago