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
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
| 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
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