Dark Chocolate Light Chocolate per Pound 8 lbs. 6 lbs. 5 lbs. 4 lbs. $4.75 1.20 0.50 hr. rk Chocolate ▪00 cases 0.60 hr. Light Chocolate 7.500 cases

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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CH 9 Homework (Application)
Sharon's Delights 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 Amount Standard Amount
per Case
Dark Chocolate
per Case
Light Chocolate
Standard Price
per Pound
8 lbs.
6 lbs.
$4.75
5 lbs.
4 lbs.
1.20
0.50 hr.
0.60 hr.
Dark Chocolate
4,000 cases
Light Chocolate
7,500 cases
Standard labor rate
$15.50 per hr.
$15.50 per hr.
Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or
sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results:
Actual production (cases)
Dark Chocolate
4,500
Light Chocolate
8,000
Actual Price per Pound
Actual Quantity Purchased and Used
Cocoa
Sugar
$4.90
1.24
85,000
53,000
Actual Labor Rate
Actual Labor Hours Used
Dark chocolate
$15.25 per hr.
Light chocolate
15.80 per hr.
2,200
4,400
Required:
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. Enter a favorable variance as a negative number using a minus
sign and an unfavorable variance as a positive number.
a. Direct materials price variance, direct materials quantity variance, and total variance.
b. Direct labor rate variance, direct labor time variance, and total variance.
a.
Direct materials price variance
Direct materials quantity variance
Check My Work 4 more Check My Work uses remaining.
Next>
Transcribed Image Text:CH 9 Homework (Application) Sharon's Delights 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 Amount Standard Amount per Case Dark Chocolate per Case Light Chocolate Standard Price per Pound 8 lbs. 6 lbs. $4.75 5 lbs. 4 lbs. 1.20 0.50 hr. 0.60 hr. Dark Chocolate 4,000 cases Light Chocolate 7,500 cases Standard labor rate $15.50 per hr. $15.50 per hr. Sharon's Delights Chocolate Company does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Sharon's Delights Chocolate Company had the following actual results: Actual production (cases) Dark Chocolate 4,500 Light Chocolate 8,000 Actual Price per Pound Actual Quantity Purchased and Used Cocoa Sugar $4.90 1.24 85,000 53,000 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.25 per hr. Light chocolate 15.80 per hr. 2,200 4,400 Required: 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. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. a. Direct materials price variance, direct materials quantity variance, and total variance. b. Direct labor rate variance, direct labor time variance, and total variance. a. Direct materials price variance Direct materials quantity variance Check My Work 4 more Check My Work uses remaining. Next>
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