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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 Light Standard Price per Chocolate Chocolate Pound Сосоа 11 lb. 8 lb. 8 lb. $4.7 Sugar 9 lb. 13 lb. 0.6 Standard labor 0.4 hr. 0.5 hr. time 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 actu Dark Chocolate Light Chocolate Actual production 4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600

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 Light Standard Price per Chocolate Chocolate Pound Сосоа 11 lb. 8 lb. 8 lb. $4.7 Sugar 9 lb. 13 lb. 0.6 Standard labor 0.4 hr. 0.5 hr. time 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 actu Dark Chocolate Light Chocolate Actual production 4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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 Light Standard Price per Chocolate Chocolate Pound Сосоа 11 lb. 8 lb. $4.7 Sugar 9 lb. 13 lb. 0.6 Standard labor 0.4 hr. 0.5 hr. time 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 4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600
Transcribed Image Text: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 Light Standard Price per Chocolate Chocolate Pound Сосоа 11 lb. 8 lb. $4.7 Sugar 9 lb. 13 lb. 0.6 Standard labor 0.4 hr. 0.5 hr. time 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 4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600
4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.6 per hr. 1,780 Light chocolate 15.4 per hr. 6,250 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 minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero. а. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost variance 9,880 x %24
Transcribed Image Text:4,900 12,200 (cases) Actual Price per Actual Pounds Purchased and Pound Used Сосоа $4.8 152,300 Sugar 0.55 197,600 Actual Labor Rate Actual Labor Hours Used Dark chocolate $14.6 per hr. 1,780 Light chocolate 15.4 per hr. 6,250 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 minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero. а. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. Direct labor rate variance Direct labor time variance Total direct labor cost variance 9,880 x %24
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