Data Table The chocolatier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill. Actual 7,000 2,050,000 g Boxes produced Direct materials used in production Actual direct material cost Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 51,250 euro 1,000 11,300 euro Standards Purchase price of direct materials 0.03 euros/g Standards 0.03 euros/g Purchase price of direct materials Materials per box Wage rate 200 g 12.04 euro/hour Boxes per hour 10 You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious Belgian chocolatier for the month of June. (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May. Label each amount as favorable (F) or unfavorable (U). ((Round all intermediary calculations and your final answers to the nearest whole number.) The materials efficiency variance is F The materials price variance is U The labor efficiency variance is F The labor price variance is Requirement 2. Discuss some possible causes of the variances you have calculated. Can you make any possible connection between the material and labor variances? What recommendations do you have for future improvement? Requirement 2. Discuss some possible causes of the variances you have calculated. Can you make any possible connection between the material and labor variances? What recommendations do you have for future improvement? The materials price and efficiency variances could be an indication that the company purchased less expensive ingredients of lower quality, which resulted in more than the standard number of rejected units. The labor price variance suggests that less experienced workers may have worked more, resuting in a slower work pace and a higher than normal amount of rejects or waste. The company should determine the cause of the rejects. The cause could be faulty materials, underskilled workers, or a combination of both. Perhaps additional training will help. If rejects are not the problem, employees may be wasting both time and materials