Flexible Budgeting and Variance AnalysisI 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 CaseLight Chocolate7 lbs.12 lbs.0.4 hr.CocoaSugarStandard labor timeActual production (cases)Dark ChocolateLight ChocolatePlanned production5,600 cases10,300 casesStandard labor rate$13.00 per hr.$13.00 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 ChocolateLight Chocolate10,700Actual Pounds Purchased and Used128,500166,500Actual Labor Hours Used1,4504,390CocoaSugarDark Chocolate10 lbs.8 lbs.0.3 hr.5,300Actual Price per Pound$5.000.55b.Actual Labor Rate$12.70 per hr.13.30 per hr.Dark chocolateLight chocolateRequired: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 positive number.a. Direct materials price varianceDirect materials quantity varianceTotal direct materials cost varianceStandard Price per Pound$4.900.60$$Direct labor rate varianceDirect labor time varianceTotal direct labor cost variance2. The variance analyses should be based on theamounts atvolumes. The budget must flex with the volume changes. If thecase, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for theand price variances.volume is different from the planned volume, as it was in thisproduction. In this way, spending from volume changes can be separated from efficiency

a.Direct materials price variance: ( SP - AP ) * AQCocoa : $ ( 4.90- 5.00) * 128,500 pounds = $…

Answered: 8 lbs. 0.3 hr. Chocolate cases 0 per…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Repair-Hour $15.00 $ 7.80 $ 0.50 $ 1.80 per Month $ 21,400 Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses $ 2,740 $ 5,730 $ 4,670 $ 3,860 Rent Administrative expenses $ 0.60 For example, wages and salaries should be $21,400 plus $15.00 per repair-hour. The company expected to work 3,000 repair-hours in May, but actually worked 2,900 repair-hours. The company expects its sales to be $50.00 per repair-hour. Required: Compute the company's activity variances for May (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Jake's Roof Repair Activity Variances For the Month Ended May 31 Revenue Expenses: Wages and salaries Parts and supplies Equipment depreciation Truck operating expenses Rent Administrative expenses Total expense Net operating income
Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 12 lbs. 8 lbs. $7.25 Sugar 10 lbs. 14 lbs. 1.40 Standard labor time 0.50 hr. 0.60 hr. Dark Chocolate Light Chocolate Planned production 4,700 cases 11,000 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) 5,000 10,000 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $7.33 140,300 Sugar 1.35 188,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.25 per hr. 2,360 Light chocolate 15.80 per hr. 6,120 this is all the information i have and i need help calulating the direct labor time variance
55:39 PM/ Remaining: 47 min. CALCULATOR PRINTER VERSION 1 BACK NEXT Problem 22-01A Cook Farm Supply Company manufactures and sells a pesticide called Snare. The following data are available for preparing budgets for Snare for the first 2 quarters of 2020. 1. Sales: quarter 1, 28,200 bags; quarter 2, 42,400 bags. Selling price is $63 per bag. Direct materials: each bag of Snare requires 4 pounds of Gumm at a cost of $3.80 per pound and 6 pounds of Tarr at 2. $1.75 per pound. 3. Desired inventory levels: Type of Inventory January 1 April 1 July 1 Snare (bags) 8,200 12,200 18,100 Gumm (pounds) Tarr (pounds) 9,100 10,400 13,300 14,500 20,400 25,200 4. Direct labor: direct labor time is 15 minutes per bag at an hourly rate of $16 per hour. 5. Selling and administrative expenses are expected to be 15% of sales plus $180,000 per quarter. 6. Interest expense is $100,000. 7. Income taxes are expected to be 30% of income before income taxes. Your assistant has prepared two budgets: (1) the…
Ava Co. sells custom jewelry for $200. The variable cost per jewel is $160. Ava has fixed operating costs of $4,000. What is Ava's operating breakeven quantity of sales, in units? A. 150 units B. 120 units C. 90 units D. 100 units
rr
MSRP $5.39 $4.99 Volume Discount 35% 35% Unit Cost $1.49 $1.49 Promotional Allowance 15% 20% Advertising and Promotion $25 Million $20 Million Allocated Fixed Costs $68 M $12 M Projected Unit Sales 115M 10M A firm has an existing product with a combined advertising and promotion budget of $25.0 million and with projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between products; 90% of the plant overhead has been allocated to the existing product, and 10%, to the new product. Additional values for each product are shown in the table above. 1. Production anticipates it will need to increase capacity to 140 million units, adding $10.0 million to annual fixed costs. If the product allocation of the plant cost is also changed to 80%/20%, what is the impact on break-even units? Please use the chart…
Rock Solld concrete manufacturers supply cement mixture directly to both the construction Industry and building supply retailers located throughout the country. The company has three machines each with a 100% capacity (60 hours) of 40 tons per week. Due to electricity supply concerns, the machines have only been able to operate at 75% capacity. One ton of cement mixture requires 400 kg of Product M and 600 kg of Product N. Ignore any wastage. Product M is purchased at R80/kg and Product N at R25/kg. Each machine requires five operators. Assume four (4) weeks per month. All materials purchased are used in the mix of cement and all cement is sold in the month it is manufactured. The cement plant takes up 90% of the total floor space. The following is an extract of some of the transactions for the month: NO 1 2 3 4 5 6 TRANSACTION Purchase the required quantity of Product M for the month. Purchase the required quantity of Product N for the month. The machine operators earn R2 000 each per…
Each unit sells for $250 January 16,000 February March April May June July 13,000 16,000 17,000 18,000 19,000 14,000 Your cash collections are 60% during the month of sale, 22% the next month and 12% two months later, 5% three months later and you never collect 1% Prepare a cash collections budget for April, May and June
Restaurant Sales Summary for month of February, 2018. Item Prime Rib Fish n Chips Barbecued Duck Total sold 690 560 350 425 280 Cheese Burger Baked Lasagna Total a. Number of Covers sold per day_ PPOP % S.P. $19.00 $14.00 $11.00 $10.00 $11.00 Revenue b. Cost of average covers - $_ c. Total Revenue in the Restaurant in the month of February 2018 d. Restaurant has 50 seats, what is the restaurant turnover ratio?
kk.4
Urgent
DESCRIPTION Fridge B Fridge C Total PDMOH RATE Cost $2,100 $1,300 $3,400 BUDGETED Machine Hours 140 60 200 APPLED MOH Cost $2,600 $1,000 $3,600 ACTUAL Machine Hours 150 75 225

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

8 lbs. 0.3 hr. Chocolate cases 0 per hr. 12 lbs. 0.4 hr. Light Chocola 10,300 cases $13.00 per hr.