Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

what are the explanations and answers? thank you Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both

what are the explanations and answers? thank you
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and suger. The following planning Information has been made available Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs $5.00 10 lbs 14 lbs 0.60 Standard labor time 0 3 h. 0.4. Planned production Standard labor rate Dark Chocolate 4,500 cases $16.50 per her Light Chocolate 13,800 cases $16.50 per te I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocos or sugar. At the end of the budget year, I Love My Chocolate Company has the following actual results Actual production (es) Cocoa Sugar Dark Chocolate 4,300 Actual Price per Pound $5.10 0.55 Actual Labor Rate $16.00 per 17.00 per Light Chocolate 14.400 Actual Pounds Purchased and Used 182.100 238,500 Actual Labor Hours Used 1,170 5,900 Dark Chocolate Light chocolate Required Flexible Budgeting and Variance Analysis I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following pla Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs. 9 lbs $5.00 10 lbs 14 lbs. Sugar Standard labor time 0.60 0.3 hr. 0.4 hr Planned production Standard labor rate Dark Chocolate 4,500 cases $16.50 per hr Light Chocolate 13,800 cases $16.50 per hr Dark Chocolate Light Chocolate Planned production 4,500 cases 13,800 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 Dark Chocolate Light Chocolate Actual production (cases) 4,300 14,400 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.10 182,100 Sugar 0.55 238,500 Actual Labor Rate Actual Labor Hours Used Dark chocolate $16.00 per hr 1,170 Light chocolate 17.00 per hr 5,900 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 Direct materials price variance Direct materials quantity variance Total direct materials cost varlance a. b. Direct labor rate variance Il 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 with AI-Powered 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

Essentials Of Federal Taxation 2018

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

9th Edition

9781260007640

Students also viewed these Accounting questions