Homework Help is Here – Start Your Trial Now!
Business
Accounting
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. 12,750 X 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 Unfavorable Unfavorable Unfavorable Unfavorable Favorable Favorable 2. The variance analyses should be based on the standard ✓amounts at actual ✔volumes. The budget must flex with the volume changes. If the actual ✔volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct ✓production. In this way, spending from volume changes can be separated from efficiency and price materials and direct labor that will be required for the actual

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. 12,750 X 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 Unfavorable Unfavorable Unfavorable Unfavorable Favorable Favorable 2. The variance analyses should be based on the standard ✓amounts at actual ✔volumes. The budget must flex with the volume changes. If the actual ✔volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct ✓production. In this way, spending from volume changes can be separated from efficiency and price materials and direct labor that will be required for the actual

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Please do not give solution in image format thanku 

Cocoa Sugar Dark chocolate Light chocolate Required: $4.90 1.24 Actual Labor Rate $15.25 per hr. 15.80 per hr. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. 85,000 53,000 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. Direct labor rate variance Direct labor time variance Total direct labor cost variance Actual Labor Hours Used 2,200 4,400 12,750 x Unfavorable Unfavorable Unfavorable Unfavorable Favorable Favorable 2. The variance analyses should be based on the standard ✔amounts at actual ✔volumes. The budget must flex with the volume changes. If the actual✓✔ volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the actual ✓ production. In this way, spending from volume changes can be separated from efficiency and price variances.
Transcribed Image Text:Cocoa Sugar Dark chocolate Light chocolate Required: $4.90 1.24 Actual Labor Rate $15.25 per hr. 15.80 per hr. Direct materials price variance Direct materials quantity variance Total direct materials cost variance b. 85,000 53,000 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. Direct labor rate variance Direct labor time variance Total direct labor cost variance Actual Labor Hours Used 2,200 4,400 12,750 x Unfavorable Unfavorable Unfavorable Unfavorable Favorable Favorable 2. The variance analyses should be based on the standard ✔amounts at actual ✔volumes. The budget must flex with the volume changes. If the actual✓✔ volume is different from the planned volume, as it was in this case, then the budget used for performance evaluation should reflect the change in direct materials and direct labor that will be required for the actual ✓ production. In this way, spending from volume changes can be separated from efficiency and price variances.
Flexible Budgeting and Variance Analysis 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 labor rate Actual production (cases) Cocoa Sugar Light Chocolate 4,000 cases 7,500 cases $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: Dark Chocolate 4,500 Standard Amount Standard Amount per Case per Case Dark Chocolate Light Chocolate 8 lbs. 5 lbs. 0.50 hr. Actual Price per Pound $4.90 1.24 Dark chocolate Light chocolate Dark Chocolate 6 lbs. 4 lbs. 0.60 hr. Actual Labor Rate $15.25 per hr. 15.80 per hr. Light Chocolate 8,000 Actual Quantity Purchased and Used 85,000 53,000 Standard Price per Pound Actual Labor Hours Used 2,200 4,400 $4.75 1.20
Transcribed Image Text:Flexible Budgeting and Variance Analysis 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 labor rate Actual production (cases) Cocoa Sugar Light Chocolate 4,000 cases 7,500 cases $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: Dark Chocolate 4,500 Standard Amount Standard Amount per Case per Case Dark Chocolate Light Chocolate 8 lbs. 5 lbs. 0.50 hr. Actual Price per Pound $4.90 1.24 Dark chocolate Light chocolate Dark Chocolate 6 lbs. 4 lbs. 0.60 hr. Actual Labor Rate $15.25 per hr. 15.80 per hr. Light Chocolate 8,000 Actual Quantity Purchased and Used 85,000 53,000 Standard Price per Pound Actual Labor Hours Used 2,200 4,400 $4.75 1.20
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 6 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
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