Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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Chapter 9, Problem 2PA
Flexible
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:
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:
Instructions
- 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, quantity, and total variance.
- B. Direct labor rate, time, and total variance.
- 2. Why are the standard amounts in part (1) based on the actual production for the year instead of the planned production for the year?
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Flexible budgeting and variance analysisI Love My Chocolate Company makes dark chocolate and lightchocolate. Both products require cocos and sugar. The followingplanning information has been made available: (8.PNG)
I Love My Chocolate Company does not expect there to be anybeginning or ending inventories of cocoa or sugar. At the end of thebudget year, I Love My Chocolate Company had the following actualresults: (9.PNG)
Instructions1. Prepare the following variance analyses for both chocolates and thetotal, based on the actual results and production levels at the end of thebudget year:
a. Direct materials price, quantity, and total varianceb. Direct labor rate, time, and total variance2. Why are the standard amounts in part (1) based on the actualproduction for the year instead of the planned production for the year?
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:
Standard Amount per Case
Dark Chocolate
Light Chocolate
Standard Price per Pound
Cocoa
11 lb.
8 lb.
$4.3
Sugar
9 lb.
13 lb.
0.6
Standard labor time
0.4 hr.
0.5 hr.
Dark Chocolate
Light Chocolate
Planned production
5,400 cases
11,000 cases
Standard labor rate
$13 per hr.
$13 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)
5,100
11,400
Actual Price per Pound
Actual Pounds Purchased and Used
Cocoa
$4.4
148,000
Sugar
0.55
189,200
Actual Labor Rate
Actual Labor Hours Used…
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:
Standard Amount per Case
Dark Chocolate
Light Chocolate
Standard Price per Pound
Cocoa
11 lb.
8 lb.
$4.7
Sugar
9 lb.
13 lb.
0.6
Standard labor time
0.4 hr.
0.5 hr.
Dark Chocolate
Light Chocolate
Planned production
5,200 cases
11,700 cases
Standard labor rate
$15 per hr.
$15 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)
4,900
12,200
Actual Price per Pound
Actual Pounds Purchased and Used
Cocoa
$4.8
152,300
Sugar
0.55
197,600
Actual Labor Rate
Actual Labor Hours Used
Dark chocolate…
Chapter 9 Solutions
Managerial Accounting
Ch. 9 - What are the basic objectives in the use of...Ch. 9 - What is meant by reporting by the principle of...Ch. 9 - What are the two variances between the actual cost...Ch. 9 - The materials cost variance report for Nickols...Ch. 9 - A. What are the two variances between the actual...Ch. 9 - Prob. 6DQCh. 9 - Would the use of standards be appropriate in a...Ch. 9 - A. Describe the two variances between the actual...Ch. 9 - At the end of the period, the factory overhead...Ch. 9 - If variances are recorded in the accounts at the...
Ch. 9 - Direct materials variances Bellingham Company...Ch. 9 - Direct labor variances Bellingham Company produces...Ch. 9 - Factory overhead controllable variance Bellingham...Ch. 9 - Factory overhead volume variance Bellingham...Ch. 9 - Standard cost journal entries Bellingham Company...Ch. 9 - Prob. 6BECh. 9 - Crazy Delicious Inc. produces chocolate bars. The...Ch. 9 - Prob. 2ECh. 9 - Salisbury Bottle Company manufactures plastic...Ch. 9 - The following data relate to the direct materials...Ch. 9 - De Soto Inc. produces tablet computers. The...Ch. 9 - Standard direct materials cost per unit from...Ch. 9 - H.J. Heinz Company uses standards to control its...Ch. 9 - Direct labor variances The following data relate...Ch. 9 - Glacier Bicycle Company manufactures commuter...Ch. 9 - Ada Clothes Company produced 40,000 units during...Ch. 9 - Prob. 11ECh. 9 - Direct materials and direct labor variances At the...Ch. 9 - Flexible overhead budget Leno Manufacturing...Ch. 9 - Prob. 14ECh. 9 - Factory overhead cost variances The following data...Ch. 9 - Thomas Textiles Corporation began November with a...Ch. 9 - Prob. 17ECh. 9 - Factory overhead cost variance report Tannin...Ch. 9 - Prob. 19ECh. 9 - Prob. 20ECh. 9 - Income statement indicating standard cost...Ch. 9 - Prob. 22ECh. 9 - Prob. 23ECh. 9 - Rosenberry Company computed the following revenue...Ch. 9 - Lowell Manufacturing Inc. has a normal selling...Ch. 9 - Shasta Fixture Company manufactures faucets in a...Ch. 9 - Flexible budgeting and variance analysis I Love My...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Tiger...Ch. 9 - CodeHead Software Inc. does software development....Ch. 9 - Direct materials and direct labor variance...Ch. 9 - Flexible budgeting and variance analysis Im Really...Ch. 9 - Direct materials, direct labor, and factory...Ch. 9 - Factory overhead cost variance report Feeling...Ch. 9 - Prob. 5PBCh. 9 - Prob. 1COMPCh. 9 - Advent Software uses standards to manage the cost...Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Prob. 4MADCh. 9 - Ethics in action Dash Riprock is a cost analyst...Ch. 9 - Variance interpretation Vanadium Audio Inc. is a...Ch. 9 - MinnOil performs oil changes and other minor...Ch. 9 - Marten Company has a cost-benefit policy to...Ch. 9 - Prob. 3CMACh. 9 - JoyT Company manufactures Maxi Dolls for sale in...
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY