of June. Internship with an interview, you are given the following information related to a fictitious chocolatie invited to interview for (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May In order to calculate the variances complete the following table. (Round your final answer to the nearest whole number. Abbreviation used: qty = quantity.) Actual costs incurred Actual input qty * Budgeted price Flexible budget Direct materials Direct labor Now compute the variances. (Enter the amount of the variance, then select whether it is favorable or unfavorable.) The materials efficiency variance is The materials price variance is The labor efficiency variance is The labor price variance is Requirement 2. Discuss some possible causes of the variances you have calculated. Can you make any possible connection between the material and labor variances? What recommendations do you have for future improvement? The materials price and efficiency variances could be an indication that the company purchased expensive ingredients of quality, which resulted in than the standard number of rejected units. The labor price work pace and a than normal amount of rejects or waste Perhaps variance suggests that experienced workers may have worked more, resuting in a The company should determine the cause of the rejects. The cause could be will help. If rejects are not the problem, employees may be The chocolatier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill. Actual 7,000 Boxes produced Direct materials used in production Actual direct material cost 16,000 pounds (lbs.) $80,000 2,500 Actual direct manufacturing labor-hours Actual direct manufacturing labor cost $52,500 Standards $5.50 per pound Purchase price of direct materials Materials per box Wage rate 0.60 pounds $25.10 per hour Boxes per hour 6 of June. Internship with an interview, you are given the following information related to a fictitious chocolatie invited to interview for (Click the icon to view the data.) Read the requirements. Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May In order to calculate the variances complete the following table. (Round your final answer to the nearest whole number. Abbreviation used: qty = quantity.) Actual costs incurred Actual input qty * Budgeted price Flexible budget Direct materials Direct labor Now compute the variances. (Enter the amount of the variance, then select whether it is favorable or unfavorable.) The materials efficiency variance is The materials price variance is The labor efficiency variance is The labor price variance is Requirement 2. Discuss some possible causes of the variances you have calculated. Can you make any possible connection between the material and labor variances? What recommendations do you have for future improvement? The materials price and efficiency variances could be an indication that the company purchased expensive ingredients of quality, which resulted in than the standard number of rejected units. The labor price work pace and a than normal amount of rejects or waste Perhaps variance suggests that experienced workers may have worked more, resuting in a The company should determine the cause of the rejects. The cause could be will help. If rejects are not the problem, employees may be The chocolatier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill. Actual 7,000 Boxes produced Direct materials used in production Actual direct material cost 16,000 pounds (lbs.) $80,000 2,500 Actual direct manufacturing labor-hours Actual direct manufacturing labor cost $52,500 Standards $5.50 per pound Purchase price of direct materials Materials per box Wage rate 0.60 pounds $25.10 per hour Boxes per hour 6
