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 chocolatier for the month of June. Question content area bottom Part 1 Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May. In order to calculate the variances complete the following table. ​(Round your final answer to the nearest whole number. Abbreviation​ used: qty​ = quantity.) The chocolatier 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 10,000 Direct materials used in production 13,000 pounds (lbs.) Actual direct material cost $78,000 Actual direct manufacturing labor-hours 2,400 Actual direct manufacturing labor cost $31,200     Standards   Purchase price of direct materials $7.00 per pound Materials per box 0.90 pounds Wage rate $15.00 per hour Boxes per hour 6   Actual costs incurred Actual input qty × Budgeted price Flexible budget Direct materials       Direct labor

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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 chocolatier for the month of June.

Question content area bottom

Part 1

Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May.

In order to calculate the variances complete the following table. ​(Round your final answer to the nearest whole number. Abbreviation​ used: qty​ = quantity.)

The chocolatier 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 10,000
Direct materials used in production 13,000 pounds (lbs.)
Actual direct material cost $78,000
Actual direct manufacturing labor-hours 2,400
Actual direct manufacturing labor cost $31,200
   
Standards  
Purchase price of direct materials $7.00 per pound
Materials per box 0.90 pounds
Wage rate $15.00 per hour
Boxes per hour 6
  Actual costs incurred Actual input qty × Budgeted price Flexible budget
Direct materials      
Direct labor      
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