Question
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
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 available:
Standard Amount per Case | ||||||
Dark Chocolate | Light Chocolate | Standard Price per Pound | ||||
Cocoa | 12 lb. | 9 lb. | $4.9 | |||
Sugar | 10 lb. | 14 lb. | 0.6 | |||
Standard labor time | 0.3 hr. | 0.4 hr. |
Dark Chocolate | Light Chocolate | |||
Planned production | 4,700 cases | 10,800 cases | ||
Standard labor rate | $16 per hr. | $16 per hr. |
I Love My Chocolate 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) | 4,500 | 11,200 | ||
Actual Price per Pound | Actual Pounds Purchased and Used | |||
Cocoa | $5 | 155,600 | ||
Sugar | 0.55 | 196,800 | ||
Actual Labor Rate | Actual Labor Hours Used | |||
Dark chocolate | $15.6 per hr. | 1,230 | ||
Light chocolate | 16.4 per hr. | 4,590 |
Required:
Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:
- Direct materials price variance, direct materials quantity variance, and total variance.
- 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. If there is no variance, enter a zero.
a. | Direct materials price variance | 5720 | Unfavorable |
Direct materials quantity variance | Unfavorable | ||
Total direct materials cost variance | Unfavorable | ||
b. | Direct labor rate variance | Unfavorable | |
Direct labor time variance | Favorable | ||
Total direct labor cost variance | Unfavorable |
Can anyone help with this? I included the favorable/unfavorable answers as marked correct by my program but I can't seem to get any of the answers right except the first one. Thank you.
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