Question
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
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.
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Part 1
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.)
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 | 10,000 |
Direct materials used in production | 13,000 pounds (lbs.) |
Actual direct material cost | $78,000 |
Actual direct manufacturing labor-hours | 2,400 |
Actual direct manufacturing labor cost | $31,200 |
Standards | |
Purchase price of direct materials | $7.00 per pound |
Materials per box | 0.90 pounds |
Wage rate | $15.00 per hour |
Boxes per hour | 6 |
Actual costs incurred | Actual input qty Budgeted price | Flexible budget | |
Direct materials | |||
Direct labor |
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