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Flexible Budgeting and Variance Analysis Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has
Flexible Budgeting and Variance Analysis
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 | 9 lbs. | 6 lbs. | $4.7 | |||
| Sugar | 7 lbs. | 11 lbs. | 0.6 | |||
| Standard labor time | 0.3 hr. | 0.4 hr. | ||||
| Dark Chocolate | Light Chocolate | |||
| Planned production | 5,500 cases | 11,200 cases | ||
| Standard labor rate | $16.5 per hr. | $16.5 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) | 5,200 | 11,600 | ||
| Actual Price per Pound | Actual Pounds Purchased and Used | |||
| Cocoa | $4.8 | 117,000 | ||
| Sugar | 0.55 | 159,900 | ||
| Actual Labor Rate | Actual Labor Hours Used | |||
| Dark chocolate | $16.1 per hr. | 1,420 | ||
| Light chocolate | 16.9 per hr. | 4,760 | ||
A-
| Direct labor rate variance | $ | ||
| Direct labor time variance | $ | ||
| Total direct labor cost variance |
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