Flexible Budgeting and Variance AnalySis I Love My Chocolate Company rnakes 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 10 lbs. 7 lbs. $5.40 Sugar 8 lbs. 12 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 4,500 cases 9,800 cases Standard labor rate $14.50 per hr. $14.50 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, I Love My Chocolate Company had the following actual results: Dark Chocolate Light Chocolate Actual production (cases) 4,300 10,200 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.50 115,000 Sugar 0.55 152,900 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.00 per hr. 1,570 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.50 115,000 Sugar 0.55 152,900 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.00 per hr. 1,570 Light chocolate 15.00 per hr. 5,230 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 Unfavorable ' V. Direct materials quantity variance Unfavorable ' 4 Total direct materials cost variance Unfavorable ' V. b. Direct labor rate variance Unfavorable v J Direct labor time variance Favorable V I SEE DEE Total direct labor cost variance Unfavorable v J Mackinaw Inc. processes a base chemical into plastic. Standard costs and actual costs for direct materials, direct labor, and factory overhead incurred for the manufacture of 74,000 A units of product were as follows: Standard C0512; Actual Costs Direct materials 199,800 lbs. at $5.20 197,800 lbs. at $5.10 Direct labor 18,500 hrs. at $17.40 18,930 hrs. at $17.80 Factory overhead Rates per direct labor hr., based on 100% of normal capacity of 19,310 direct labor hrs.: Variable cost, $3.70 $67,770 variable cost Fixed cost, $5.80 $111,998 fixed cost Each unit requires 0.25 hour of direct labor. Required: in. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Materials Price Variance Favorable ' \\i' Direct Materials Quantity Variance Favorable V J GEE Total Direct Materials Cost Variance Favorable ' \\f b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Total Direct Materials Cost Variance $ Favorable b. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct Labor Rate Variance Unfavorable Direct Labor Time Variance Unfavorable Total Direct Labor Cost Variance Unfavorable c. Determine the variable factory overhead controllable variance, fixed factory overhead volume variance, and total factory overhead cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Variable factory overhead controllable variance Favorable Fixed factory overhead volume variance Unfavorable Total factory overhead cost variance Unfavorable