I love my chocolate company makes dark chcolate and light chocolate. both products require coca and sugar. the following planning has been ,ade available. this is all i can figure out.
1. A Cocoa Sugar Total $ Direct Materials Variance Price variance: Actual price Standard price Variance Actual quantity (lbs.) Direct materials price variance 7.33 7.25 0.08 140,300 11,224 $ 1.35 1.40 0.05 188,000 9,400) (favorable) unfavorable $ $ $ 1,824 140,300 140,000 188,000 190,000 Quantity variance: Actual quantity used (lbs.) Standard quantity used (lbs.) Variance (lbs.) Standard price Direct materials quantity variance(favorable) unfavorable Total direct materials cost variance {favorable) unfavorable $7.25 2,175 $1.40 2,800) $ $ (625) 1,199 $ Total direct materials cost variance: Actual cost Standard cost Total direct materials cost variance(favorable) unfavorable Dark Chocolate Light Chocolate Total Supporting calculations: Standard quantity used of cocoa: Cases produced Standard amount per case (lbs.) Total Standard quantity used of sugar Cases produced Standard amount per case (lbs.) Total Dark Chocolate Light Chocolate Total $ Direct Labor Variance Rate variance: Actual rate Standard rate Variance Actual time Direct labor rate variance 15.25 15.50 15.80 15.50 6,120 2.360 (590) {favorable) unfavorable $ $ 1,836 $ 1,246 2,360 2,500 6,120 6,000 Time variance Actual time Standard time Variance Standard rate Direct labor time variance(favorable) unfavorable Total direct labor cost variance(favorable) unfavorable $15.50 (2,170) $15.50 1,860 $ $ (310) 936 $ Total direct labor cost variance: Actual cost Standard cost Total direct labor cost variance{favorable) unfavorable [Key essay answer here] Obj. 1, 2, 3 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: EXCEL TEMPLATE Standard Amount per Case Dark Light Chocolate Chocolate Standard Price per Pound Cocoa Sugar Standard labor time 12 lbs. 10 lbs. 0.50 hr. 8 lbs. 14 lbs. 0.60 hr. $7.25 1.40 Dark Chocolate Light Chocolate Planned production 4,700 cases Standard labor rate $15.50 per hr. 11,000 cases $15.50 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 5,000 Light Chocolate 10,000 Actual production (cases) Actual Price per Pound Actual Pounds Purchased and Used Cocoa Sugar $7.33 1.35 140,300 188,000 Actual Labor Rate Actual Labor Hours Used 2,360 6,120 Dark chocolate Light chocolate $15.25 per hr. 15.80 per hr. Instructions 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, quantity, and total variance. heck Figure: Direct materials quantity variance, $(625) F B. Direct labor rate, time, and total variance. 2. Why are the standard amounts in part (1) based on the actual production for the year instead of the planned production for the year
