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	11 lbs.		8 lbs.		$4.90
Sugar	9 lbs.		13 lbs.		0.60
Standard labor time	0.3 hr.		0.4 hr.

	Dark Chocolate		Light Chocolate
Planned production	4,700 cases		10,600 cases
Standard labor rate	$16.50 per hr.		$16.50 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)	4,500		11,000
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$5.00		138,200
Sugar	0.55		178,900
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$16.00 per hr.		1,230
Light chocolate	17.00 per hr.		4,510

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	$fill in the blank 1	FavorableUnfavorableUnfavorable
	Direct materials quantity variance	$fill in the blank 3	FavorableUnfavorableUnfavorable
	Total direct materials cost variance	$fill in the blank 5	FavorableUnfavorableUnfavorable
b.	Direct labor rate variance	$fill in the blank 7	FavorableUnfavorableUnfavorable
	Direct labor time variance	$fill in the blank 9	FavorableUnfavorableFavorable
	Total direct labor cost variance	$fill in the blank 11

Tannin Products Inc. prepared the following factory overhead cost budget for the Trim Department for July of the current year, during which it expected to use 10,000 hours for production:

Variable overhead costs:
Indirect factory labor	$26,000
Power and light	7,300
Indirect materials	13,000
Total variable overhead cost		$46,300
Fixed overhead costs:
Supervisory salaries	$39,100
Depreciation of plant and equipment	10,290
Insurance and property taxes	19,210
Total fixed overhead cost		68,600
Total factory overhead cost		$114,900

Tannin has available 14,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During July, the Trim Department actually used 9,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for July was as follows:

Actual variable factory overhead costs:
Indirect factory labor	$22,820
Power and light	6,450
Indirect materials	12,300
Total variable cost	$41,570

Construct a factory overhead cost variance report for the Trim Department for July. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If an amount box does not require an entry, leave it blank. Round your interim computations to the nearest cent, if required.

Tannin Products Inc. Factory Overhead Cost Variance Report-Trim Department For the Month Ended July 31

Productive capacity for the month 14,000 hrs.
Actual productive capacity used for the month 9,000 hrs.
	Actual Cost	Budget (at Actual Production)	Unfavorable Variances	(Favorable) Variances
Variable factory overhead costs:
Indirect factory labor	$fill in the blank 1	$fill in the blank 2	$fill in the blank 3	$fill in the blank 4
Power and light	fill in the blank 5	fill in the blank 6	fill in the blank 7	fill in the blank 8
Indirect materials	fill in the blank 9	fill in the blank 10	fill in the blank 11	fill in the blank 12
Total variable factory overhead cost	$fill in the blank 13	$fill in the blank 14
Fixed factory overhead costs:
Supervisory salaries	$fill in the blank 15	$fill in the blank 16
Depreciation of plant and equipment	fill in the blank 17	fill in the blank 18
Insurance and property taxes	fill in the blank 19	fill in the blank 20
Total fixed factory overhead cost	$fill in the blank 21	$fill in the blank 22
Total factory overhead cost	$fill in the blank 23	$fill in the blank 24
Total controllable variances			$fill in the blank 25	$fill in the blank 26
Net controllable variance-favorableNet controllable variance-unfavorable			$- Select -
Volume variance-unfavorable:
Idle hours at the standard rate for fixed factory overhead			fill in the blank 29
Total factory overhead cost variance-favorableTotal factory overhead cost variance-unfavorable			$- Select -