Complete Problem 8-44 (p. 341) on the Lucerne Chocolate Company. (A 1-page response is required.) Flexible Budget: Standard Input Quantities Cost Incurred: Allowed for Outputs Actual Inputs Actual Input Quantities Achieved Actual Prices Standard Prices Standard Prices Direct Materials: 3,400 lbs. 17.3CHF 3,400 lbs 18CHF 2,900 lbs. 18CHF =58,820CHF = 61,200CHF = 52,200CHF 3,400 .7CHF= Price variance, 500 18CHF = Quantity variance, 2,380CHF F 9,000CHF U Flexible-budget variance, 6,620 CHF U ex Direct Labor: 3,925 hrs. 38.6CHF 3,925 hrs. 38CHF 3,625 hrs. 38CHF = 151,505CHF = 149,150CHF = 137,750CHF 3,925 .6CHF 300 38CHF = Price variance, Quantity variance, 2,355CHF U 11,400CHF U Flexible-budget variance, 13,755 CHF U ? Manufacturing Overhead: Predicted Flexible Budget: Overhead Based Standard Driver Use on Actual Allowed for Outputs Actual Overhead Driver Use Achieved Costs Incurred Standard Prices Standard Prices 3,925 hrs. 11CHF 3,625 hrs. 11CHF 46,675CHF = 43,175CHF = 39,875CHF Spending variance, 46,675 43,175 = 3,500CHF U 300 11CHF = Efficiency variance, 3,300CHF U Flexible-budget variance, 6,800CHF U The flexible-budget allowance for any variable cost is the same as (is equal to) the total standard quantity allowed for the good units produced times the standard price. The budget allowance under standard costing for variable costs always depends on output, the units produced. Therefore, the direct labor budget for 2,900 units is, as shown above, 2,900 units 1.25 hours 38CHF = 137,750CHF. For 3,900 units, the budgetary allowance would be 3,900 units 1.25 hours 38CHF = 185,250CHF. Note again that a budget can be established after the fact -- after the number of units produced is known. Compute the following: Materials quantity variance, Direct-labor price variance, Direct-labor quantity variance, Variable manufacturing-overhead spending variance, Variable manufacturing-overhead efficiency variance