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Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Sugar Standard labor time Planned production Standard labor rate Actual production (cases) Cocoa Sugar Standard Amount per Case Light Chocolate Dark Chocolate Dark chocolate 11 lb. 9 lb. 0.4 hr. 8 lb. 13 lb. Dark Chocolate Light Chocolate 5,100 cases $15.5 per hr. 11,400 cases $15.5 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 the following actual results: 0.5 hr. Dark Chocolate 4,800 Actual Price per Pound $4.6 0.55 Standard Price per Pound Actual Labor Rate $15 per hr. $4.5 0.6 Light Chocolate 11,900 Actual Pounds Purchased and Used 148,700 193,000 Actual Labor Hours Used 1,750

Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Sugar Standard labor time Planned production Standard labor rate Actual production (cases) Cocoa Sugar Standard Amount per Case Light Chocolate Dark Chocolate Dark chocolate 11 lb. 9 lb. 0.4 hr. 8 lb. 13 lb. Dark Chocolate Light Chocolate 5,100 cases $15.5 per hr. 11,400 cases $15.5 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 the following actual results: 0.5 hr. Dark Chocolate 4,800 Actual Price per Pound $4.6 0.55 Standard Price per Pound Actual Labor Rate $15 per hr. $4.5 0.6 Light Chocolate 11,900 Actual Pounds Purchased and Used 148,700 193,000 Actual Labor Hours Used 1,750

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Can I get some help with this practice question please this is all the information I recieved regarding the question. 

Light chocolate Required: Prepare the following variance analyses for both chocolates and 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 a. b. Direct materials price variance Direct materials quantity variance Total direct materials cost variance Direct labor rate variance Direct labor time variance 16 per hr. Total direct labor cost variance 2. The variance analyses should be based on the the minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero. 000 6,100 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 production. In this way, spending from volume changes can be separated from in direct materials and direct labor that will be required for the efficiency and price variances.
Transcribed Image Text:Light chocolate Required: Prepare the following variance analyses for both chocolates and 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 a. b. Direct materials price variance Direct materials quantity variance Total direct materials cost variance Direct labor rate variance Direct labor time variance 16 per hr. Total direct labor cost variance 2. The variance analyses should be based on the the minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero. 000 6,100 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 production. In this way, spending from volume changes can be separated from in direct materials and direct labor that will be required for the efficiency and price variances.
Flexible Budgeting and Variance Analysis 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: Cocoa Sugar Standard labor time Planned production Standard labor rate Actual production (cases) Cocoa Sugar Standard Amount per Case Light Chocolate Dark Chocolate 11 lb. Dark chocolate 9 lb. 0.4 hr. 8 lb. 13 lb. Light Chocolate 5,100 cases $15.5 per hr. 11,400 cases $15.5 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: 0.5 hr. Dark Chocolate Dark Chocolate 4,800 Actual Price per Pound $4.6 0.55 Actual Labor Rate Standard Price per Pound $15 per hr. $4.5 0.6 Light Chocolate 11,900 Actual Pounds Purchased and Used 148,700 193,000 Actual Labor Hours Used 1,750
Transcribed Image Text:Flexible Budgeting and Variance Analysis 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: Cocoa Sugar Standard labor time Planned production Standard labor rate Actual production (cases) Cocoa Sugar Standard Amount per Case Light Chocolate Dark Chocolate 11 lb. Dark chocolate 9 lb. 0.4 hr. 8 lb. 13 lb. Light Chocolate 5,100 cases $15.5 per hr. 11,400 cases $15.5 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: 0.5 hr. Dark Chocolate Dark Chocolate 4,800 Actual Price per Pound $4.6 0.55 Actual Labor Rate Standard Price per Pound $15 per hr. $4.5 0.6 Light Chocolate 11,900 Actual Pounds Purchased and Used 148,700 193,000 Actual Labor Hours Used 1,750
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