Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 9 lbs. 6 lbs. $5.20
Sugar 7 lbs. 11 lbs. 0.60
Standard labor time 0.4 hr. 0.5 hr.
Dark Chocolate Light Chocolate
Planned production 5,400 cases 12,300 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) 5,100 12,800
Actual Price per Pound Actual Pounds Purchased and Used
Cocoa $5.30 123,300
Sugar 0.55 172,100
Actual Labor Rate Actual Labor Hours Used
Dark chocolate $16.10 per hr. 1,860
Light chocolate 16.90 per hr. 6,560

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. If there is no variance, enter a zero.

a. Direct materials price variance $
Direct materials quantity variance $
Total direct materials cost variance $
b. Direct labor rate variance $
Direct labor time variance $
Total direct labor cost variance $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Pricing And Management Accounting

Authors: David Dugdale

1st Edition

78-1032224824, 1032224827

More Books

Students also viewed these Accounting questions

Question

b. Is it an undergraduate or graduate level course?

Answered: 1 week ago