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 posi number. a. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance
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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 12 lbs. 9 lbs. $5.00 Sugar 10 lbs. 14 lbs. 0.60 Standard labor time 0.3 hr. 0.4 hr. Dark Chocolate Light Chocolate Planned production 4,200 cases 12,100 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) 4,000 12,600 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.10 162,200 Sugar 0.55 211,000 Actual Labor Rate Actual Labor Hours Used Dark…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. $5.30 Sugar 7 lbs. 11 lbs. 0.60 Standard labor time 0.4 hr. 0.5 hr. Dark Chocolate Light Chocolate Planned production 5,000 cases 11,500 cases Standard labor rate $14.50 per hr. $14.50 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) 4,800 12,000 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.40 115,800 Sugar 0.55 161,500 Actual Labor Rate Actual Labor Hours Used Dark…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 12 lb. 9 lb. $4.4 Sugar 10 lb. 14 lb. 0.6 Standard labor time 0.3 hr. 0.4 hr. Dark Chocolate Light Chocolate Planned production 4,300 cases 13,800 cases Standard labor rate $16 per hr. $16 per hr. I Love My Chocolate 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) 4,100 14,400 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $4.5 179,700 Sugar 0.55 236,500 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.6 per hr. 1,120 Light chocolate…
- Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (5,000 bars) are as follows: Ingredient Quantity Price Cocoa 500 lbs. $1.40 per lb. Sugar 100 lbs. $0.50 per lb. Milk 250 gal. $1.60 per gal. Determine the standard direct materials cost per bar of chocolate.Truly Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,457 bars) are as follows: Ingredient Quantity Price Cocoa 420 lbs. $0.30 per lb. Sugar 120 lbs. $0.60 per lb. Milk 90 gal. $1.20 per gal. Determine the standard direct materials cost per bar of chocolate. Round to two decimal places.fill in the blank 1 of 1$ per barCarol’s Cupcakes sells cupcakes and other desserts through its retail store. The company has always made all of its ingredients from scratch, but has recently been approached by a supplier that specializes in icing. Carol believes that the supplier’s icing is of equal quality to her own, and believes their offer of $3.00 per liter may enable her to save money. Carol is evaluating her own cost of producing icing: Per Liter 5,000 liters per year Direct materials $1.00 $5,000 Direct labour 0.50 2,500 Variable manufacturing overhead 0.25 1,250 Fixed manufacturing overhead – traceable* 1.00 5,000 Fixed manufacturing overhead - allocated 1.75 8,750 Total $4.50 $22,500 *40% relates to cleaning and maintenance of the icing equipment and 60% relates to depreciation of icing equipment (with no resale value) Examining the report, Carol says, “Their icing is just as good, and it would save me $1.50 per…
- nick limited sells creme, a cream suitable for variety of first aid uses. The company commenced operations earlier this year and expects to sell 100,000 tubes of Super crème. The following Information is available: Selling price per tube 7.00Direct material cost per tube 2.10 Direct labour cost per tube 1.35Variable overhead cost per tube 0.75Total fixed costs for the year. 210,000RequiredWhat is the Break-even point (BEP) in tubes and sales revenue? 4) If the company wanted to earn a profit of UGX 46,200 for the year how many tubes of Super crème must be sold? By what percentage should expected sales revenue fall before NICK Limited starts to make a loss? State the assumptions and limitations of break-even analysisMy Kitchen Delights (MKD) is considering two newsuppliers for the jars used in the production process. Th e qualityat both suppliers is equal. Assume that the annual holding costis 30 percent of the unit price. Monthly demand averages 20,000jars. Ordering cost with these two suppliers is $30 per order. Th eprice lists for the suppliers are as follows: (a) Determine the optimal order quantity when usingSupplier A.(b) Determine the optimal order quantity when usingSupplier B.(c) Given MKD’s lack of space, which supplier do yourecommend be used? Justify your answer.M & Z Creameries, Corp. process milk and sugar to make vanilla ice cream. They sell their ice cream in large one-gallon containers to schools, hospitals, nursing homes, and restaurants. Each batch produces 1,700 gallons of ice cream at a cost of $840 per batch. M & Z Creameries, Corp. sells the one-gallon containers for $23.00 each and spends $0.35 for each plastic container. M & Z Creameries, Corp. has started to determine the feasibility of adding chocolate and strawberries and sell pint-size portions at local supermarkets.Further processing of each batch of ice cream could produce 24,400 pint-sized portions. A recent market study determined a demand existed for this type of product. M & Z Creameries, Corp. could sell each pint-sized portion for $2.70. Additional packaging would cost $0.30 per pint, and the additional materials would cost $0.25 per pint. There would be no change in fixed costs.Should they continue to sell only one-gallon size containers of vanilla ice…
- Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling cookie is the chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of 400,000 pounds is as follows: Cost Item Quantity Standard Unit Cost Total Cost Direct material: Cookie mix 10 oz. $0.02 per oz. $0.20 Milk Chocolate 5 oz. $0.15 per oz. $0.75 Almonds 1 oz. $0.50 per oz. $0.50 Total $1.45 Direct Labor Mixing 1 min $14.40 per hr. $0.24 Baking 2 min $18.00 per hr. $0.60 Total $0.84 Cost Item Quantity Standard Unit Cost Total Cost Variable overhead 3 min $32.40 per direct-labor hr. $1.62 Total Standard cost per pound $3.91 Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. The month of April's…Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling cookie is the chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of 400,000 pounds is as follows: Cost Item Quantity Standard Unit Cost Total Cost Direct material: Cookie mix 10 oz. $0.02 per oz. $0.20 Milk Chocolate 5 oz. $0.15 per oz. $0.75 Almonds 1 oz. $0.50 per oz. $0.50 Total $1.45 Direct Labor Mixing 1 min $14.40 per hr. $0.24 Baking 2 min $18.00 per hr. $0.60 Total $0.84 Cost Item Quantity Standard Unit Cost Total Cost Variable overhead 3 min $32.40 per direct-labor hr. $1.62 Total Standard cost per pound $3.91 Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. The month of April's…Aunt Molly's Old Fashioned Cookies bakes cookies for retail stores. The company's best-selling cookie is the chocolate nut supreme, which is marketed as a gourmet cookie and regularly sells for $8.00 per pound. The standard cost per pound of chocolate nut supreme, based on Aunt Molly's normal monthly production of 400,000 pounds is as follows: Cost Item Quantity Standard Unit Cost Total Cost Direct material: Cookie mix 10 oz. $0.02 per oz. $0.20 Milk Chocolate 5 oz. $0.15 per oz. $0.75 Almonds 1 oz. $0.50 per oz. $0.50 Total $1.45 Direct Labor Mixing 1 min $14.40 per hr. $0.24 Baking 2 min $18.00 per hr. $0.60 Total $0.84 Cost Item Quantity Standard Unit Cost Total Cost Variable overhead 3 min $32.40 per direct-labor hr. $1.62 Total Standard cost per pound $3.91 Aunt Molly's management accountant, Karen Blair, prepares monthly budget reports based on these standard costs. The month of April's…