You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious chocolatier for the month of June. (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 Actual input ty incurred 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? quality, which resulted in than the standard number of rejected units. The labor price variance suggests that experienced workers may have The materials price and efficiency variances could be an indication that the company purchased expensive ingredients of worked more, resuting in a work pace and a than normal amount of rejects or waste. The company should determine the cause of the rejects. The cause could be Perhaps will help. If rejects are not the problem, employees may be Data table 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 Boxes produced 7,000 Direct materials used in production 18,500 pounds (lbs.) Actual direct material cost $ 148,000 Actual direct manufacturing labor-hours 2,100 Actual direct manufacturing labor cost $37,800 Standards Purchase price of direct materials Materials per box Wage rate Boxes per hour $8.50 per pound 1.40 pounds $24.70 per hour 6