Hot Chocolate, We Got It$!,$ LLC$.$ is a manufacturer of premium flavored hot chocolates. Last Christmas season, the

company produced $200,000$ packs of its most popular hot chocolate mix, Sweet Peppermint. Production this Christmas

season exceeded last season's sales by $25\%.$

One pack of hot chocolate mix is expected to use $2$ tablespoons of cocoa at a standard direct material cost of $$0\mathrm{.}10$ per

tablespoon. As of November $1,$ the company had totally depleted its cocoa supply. During November, the company

purchased $400,000$ tablespoons of cocoa at a total cost of $$80,000.$ At the end of the Christmas season, $15,000$

tablespoons remained in inventory.

The expected direct labor cost per pack of Sweet Peppermint is $$1\mathrm{.}50.$ The company anticipates that $0\mathrm{.}05$ direct labor

hours will be logged for each pack produced. During the month, the elves worked $15,000$ direct labor hours and were paid

$$29\mathrm{.}00$ per hour.

Given the above data, which of the following statements is incorrect?

The actual direct material price per unit of output is $$0\mathrm{.}20$

The actual direct labor unit input ratio is $0\mathrm{.}06$ hours per pack.

A possible explanation for the DM Price variance is supply chain shortages which drove the price of cocoa up$.$

The direct labor hours allowed for the actual output level were less than the direct labor hours logged.

The Total Direct Material variance is an unfavorable $$27,000$