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2 CHAPTER7 FLEXIBLE BUDGETS, DIRECT-COST VARIANCES, AND have been invited to interview for an are chocolatier for the month of June. The choco- CONTROL 7-37 internship with an international food manufacturing com given the following information related to a fictitious Belgiai latier manufactures truffles in 12-piece boxes. The pro company. When you arrive for the interview, you pany Possible causes for price and efficiency v be variances. You chocolatier uction is labor intensive, and the delicate nature of the chocolate requires a high degree o skill. Actual Boxes produced Direct materials used in production Actual direct material cost Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 10,000 2,150,000 g 60,200 euro 1,100 12,650 euro Standards Purchase price of direct materials 0.03 euro/g 200 g Materials per box Wage rate Boxes per hour 12 euro/hour 10 Please respond to the following questions as if you were in an interview situation 1. ed Calculate the the month of June Discuss some possible causes of the variances you have hetween the material and labor variances? What recommendations do you have for future improvement? materials efficiency and price variance and the wage and labor efficiency variances for 2. calculated. Can you make any possible connection