Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning Information has been made avance Standard Amount per Case Dark Light Chocolate Chocolate Standard Price per Pound Cocoa 12 lbs. 14.70 Sugar 10 tbs. 0.00 Standard laber 0.3 h 0.4 h. Dark Chocolate Light Chocolate Planned production 3,700 cases 10,400 cases Standard labor rate $16.50 per hr $16.50 per I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocos Dark Chocolate Light Chocolate Uga At the end of the budget year I Love My Chocolate Company had the following actual results Actual production (cases) 3,500 10.000 Actual Price per Pound Cocoa $4.80 Actual Pounds Purchased and Used 139.900 181,500 Actual Labor Hours Used Sugar 0.55 Actual Labor Rate $16.20 per hr 16.80 per hr Dark chocolate Light chocolate 4,430 Required: 1. Prepare the following vanance analyses for both chocolates and the based on the rest oduction levels at the end of the budget year a. Ootma r e variance, Grect mandantity once, total verance b. Declaratie de labor a te and total variance esa negative number using am o n and an unfavorable a. Det materials prce vacance Total direct materials cost vanance b. Direct laborate variance Direct labor time variance Total direct labor contanance 2. The variance analyses should be based on the standard amounts the budget used for performance a n d reflect the change d ency and price variances actual volumes. The budget must be with the volume changes. If the actual womederen from the planned volume ait was in this case ate an d production in the way, eng book changes can be Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning Information has been made avance Standard Amount per Case Dark Light Chocolate Chocolate Standard Price per Pound Cocoa 12 lbs. 14.70 Sugar 10 tbs. 0.00 Standard laber 0.3 h 0.4 h. Dark Chocolate Light Chocolate Planned production 3,700 cases 10,400 cases Standard labor rate $16.50 per hr $16.50 per I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocos Dark Chocolate Light Chocolate Uga At the end of the budget year I Love My Chocolate Company had the following actual results Actual production (cases) 3,500 10.000 Actual Price per Pound Cocoa $4.80 Actual Pounds Purchased and Used 139.900 181,500 Actual Labor Hours Used Sugar 0.55 Actual Labor Rate $16.20 per hr 16.80 per hr Dark chocolate Light chocolate 4,430 Required: 1. Prepare the following vanance analyses for both chocolates and the based on the rest oduction levels at the end of the budget year a. Ootma r e variance, Grect mandantity once, total verance b. Declaratie de labor a te and total variance esa negative number using am o n and an unfavorable a. Det materials prce vacance Total direct materials cost vanance b. Direct laborate variance Direct labor time variance Total direct labor contanance 2. The variance analyses should be based on the standard amounts the budget used for performance a n d reflect the change d ency and price variances actual volumes. The budget must be with the volume changes. If the actual womederen from the planned volume ait was in this case ate an d production in the way, eng book changes can be
