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Q: I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made

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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 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 5,500 cases 12,000 cases
Standard labor rate $15.50 per hr. $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 Light Chocolate
Actual production (cases) 5,200 12,500
Actual Price per Pound Actual Pounds Purchased and Used
Cocoa $5.30 122,400
Sugar 0.55 169,600
Actual Labor Rate Actual Labor Hours Used
Dark chocolate $15.20 per hr. 1,890
Light chocolate 15.80 per hr. 6,410

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

Direct materials quantity variance

Total direct materials cost variance

b. Direct labor rate variance

Direct labor time variance

Total direct labor cost variance

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