Chapter 23 - Homework eBook ? Help 1. EX.23.01.ALGO Flexible Budgeting and Variance Analysis Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: 2. EX.23.02.ALGO Standard Amount Standard Amount 3. EX.23.04.ALGO per Case per Case Standard Price Dark Chocolate Light Chocolate per Pound 4. EX.23.07.ALGO Cocoa 10 lbs. 7 lbs. $4.50 Sugar 8 Ibs. 12 lbs. 0.60 5. EX.23.08.ALGO Standard labor time 0.3 hr. 0.4 hr. 6. PR.23.02A.ALGO Dark Chocolate Light Chocolate 7. PR.23.03A.ALGO Planned production 3,900 cases 11,100 cases Standard labor rate $16.50 per hr. $16.50 per hr. Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 3,700 11,500 Actual Price per Pound Actual Quantity Purchased and Used Cocoa $4.60 118,100 Sugar 0.55 163,400 Actual Labor Rate Actual Labor Hours Used Dark chocolate $16.00 per hr. 1,010 Light chocolate 17.00 per hr. 4,720 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 sion and an unfavorable variance as a positive number. Check My Work 3 more Check My Work uses remaining. Previous Next Progress: 6/7 items Assignment Score: 0.0% Save and Exit Submit Assignment for GradingChapter 23 - Homework eBook actual results: ? Help 1. EX.23.01.ALGO Dark Chocolate Light Chocolate 2. EX.23.02.ALGO Actual production (cases) 3,700 11,500 3. EX.23.04.ALGO Actual Price per Pound Actual Quantity Purchased and Used 4. EX.23.07.ALGO Cocoa $4.60 118,100 Sugar 0.55 163,400 5. EX.23.08.ALGO 6. PR.23.02A.ALGO Actual Labor Rate Actual Labor Hours Used Dark chocolate $16.00 per hr. 1,010 7. PR.23.03A.ALGO Light chocolate 17.00 per hr. 4,720 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. 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 2. The variance analyses should be based on the amounts at volumes. The budget must flex with the volume changes. If the volume is different from the planned volume, 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 production. In this way, spending from volume changes can be separated from efficiency and price variances. Check My Work 3 more Check My Work uses remaining. Previous Next Progress: 6/7 items Assignment Score: 0.0% Save and Exit Submit Assignment for Grading