Prepare the following variance analyses for both chocolate

Assignment Help Accounting Basics

Reference no: EM13602010

Belgian Chocolate Company makes dark chocolate and light chocolate. Bath products require cocoa and sugar. The following planning information has been made available:
Dark Chocolate Light Chocolate Standard Price per pound
Cocoa 10 lbs 7 lbs $4.50
Sugar 8 lbs 12 lbs 0.65
Standard Labor time 0.35 hr 0.40 hr

Dark Chocolate Light Chocolate
Planned production 4,200 Cases 10,500 cases
Standard labor rate $14.50 per hr. $14.50 per hr

Belgian Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Belgian Chocolate had the following actual results:
Dark Chocolate Light Chocolate
Actual Production (Cases) 4,000 11,000
Actual Price per Pound Actual Pounds Purchased and Used
Cocoa $4.60 1,270
Sugar 0.60 160,000
Actual labor rate Actual labor hours used
Dark Chocolate $13.90 per hr 1270
Light Chocolate 14.90 per hour 4500

1. Prepare the following variance analyses for both chocolate and total, based on the actual results and production levels at the end of the budge year:
a. Direct Materials price, quantity, and total variance
b. Direct labor rate, time, and total variance
2. Why are the standard amounts in part 1 based on the actual production for the year instead of the planned production for the year?

Reference no: EM13602010

Questions Cloud

Prepare the quarterly income statements showing income from : johnson products inc. has three regional division organized as profit centers. the chief executive officer ceo

Ortiz companys sales budget projects unit sales of part : ortiz companys sales budget projects unit sales of part 198z of 10300 units in jaunary 11 600 units in february and

The velocity of the system changes from 127 fts to 55 fts : a closed system of mass 6lbm undergoes a process in which there is a heat transfer of 245 ft-lbf from the system to

What financial statements would natalie need in order to : after investigating the different forms of business organization natalie koebel decides to operate her business as a

Prepare the following variance analyses for both chocolate : belgian chocolate company makes dark chocolate and light chocolate. bath products require cocoa and sugar. the

Lee and levi law firm uses job-order costing to accumulate : lee and levi law firm uses job-order costing to accumulate costs chargeable to each client. it has two departments the

What is the increase in internal energy in ft-lbf taking : 1.7 lbm object falling at 162 fts enters a viscous liquid and is essentially brought to rest before it strikes the

Ending inventory may not equal the cost of good available : anthony company uses a perpetual inventory system. it entered into the following purchases and sales transacti? anthony

What form of business organization-proprietorship : natalie koebel spent much of her childhood learning the art of cookie-making from her grandmother. they spent many

User Account

All Pages