You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious Belgian chocolatier for the month of June. The choco- latier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill. Actual Boxes produced Direct materials used in production Actual direct material cost 10,000 2,150,000 g 60,200 euro Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 1,100 12,650 euro Standards Purchase price of direct materials Materials per box Wage rate Boxes per hour 0.03 euro/g 200 g 12 euro/hour 10

You have been invited to interview for an internship with an international food manufacturing company. When you arrive for the interview, you are given the following information related to a fictitious Belgian chocolatier for the month of June. The choco- latier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill. Actual Boxes produced Direct materials used in production Actual direct material cost 10,000 2,150,000 g 60,200 euro Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 1,100 12,650 euro Standards Purchase price of direct materials Materials per box Wage rate Boxes per hour 0.03 euro/g 200 g 12 euro/hour 10

Name: Q.Calculate the materials efficiency and price variance and the wage a
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Description: Q.Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of June. You have been invited to interview for aninternship with an international food manufacturing company. When you arrive for the i

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

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.

Topic Video

Question

Q.Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of June.

You have been invited to interview for an
internship with an international food manufacturing company. When you arrive for the interview, you are
given the following information related to a fictitious Belgian chocolatier for the month of June. The choco-
latier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of
the chocolate requires a high degree of skill.
Actual
Boxes produced
Direct materials used in production
Actual direct material cost
10,000
2,150,000 g
60,200 euro
Actual direct manufacturing labor-hours
Actual direct manufacturing labor cost
1,100
12,650 euro
Standards
Purchase price of direct materials
Materials per box
Wage rate
Boxes per hour
0.03 euro/g
200 g
12 euro/hour
10

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