Standard Amount per Case Light Chocolate Standard Price per Pound Dark Chocolate 12 lbs. 8 lbs. Sugar 10 lbs. 14 lbs. Standard labor time 0.50 hr. 0.60 hr. Planned production Standard labor rate Dark Chocolate Light Chocolate 4,700 cases $15.50 per hr. 11,000 cases $15.50 per hr. $7.25 1.40 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) 5,000 10,000 Actual Price per Pound $7.33 Actual Pounds Purchased and Used 140,300 Sugar 1.35 188,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate Light chocolate $15.25 per hr. 15.80 per hr. 2,360 6,120 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. 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, and total variance. Check My Work Previous Next ebook COLDE Sugar 37733 1.35 Actual Labor Rate Dark chocolate $15.25 per hr. Light chocolate 15.80 per hr. Required: 188,000 Actual Labor Hours Used 2,360 6,120 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. 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, and total variance. b. Direct labor rate variance, direct labor time variance, and total variance. 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 2. The variance analyses should be based on the the amounts at volumes. The budget must flex with the volume changes. If volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for thei production. In this way, spending from volume changes can be separated from efficiency and price variances. Check My Work Previous Next