Please help with part B Flexible Budgeting and Variance AnalysisI Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:Standard Amount per CaseDark ChocolateLight ChocolateStandard Price per PoundCocoa10 Ibs.7 Ibs.$5.00Sugar8 Ibs.12 lbs.0.60Standard labor time0.4 hr.0.5 hr.Dark ChocolateLight ChocolatePlanned production5,800 cases11,000 casesStandard labor rate$16.00 per hr.$16.00 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 Conmpany had the following actual results:Dark ChocolateLight ChocolateActual production (cases)5,50011,400Actual Price per PoundActual Pounds Purchased and UsedСосоа$5.10135,500Sugar0.55176,300Actual Labor RateActual Labor Hours UsedDark chocolate$15.70 per hr.2,000Light chocolate16.30 per hr.5,840Required: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:a. Direct materials price variance, direct materials quantity variance, and total variance.b. Direct labor rate variance, direct labor time variance, and total variance.Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.Unfavorable vUnfavorable vDirect materials price variance4,735 Va.Direct materials quantity variance800Total direct materials cost variance5,535Unfavorable vb.Direct labor rate varianceUnfavorable vDirect labor time varianceFavorable vTotal direct labor cost varianceUnfavorable2. The variance analyses should be based on the standard vamounts at actual vvolumes. The budget must flex with the volume changes. If the actual vvolume 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 thatwill be required for the actual v production. In this way, spending from volume changes can be separated from efficiency and price variances.

Standard costing in simple terms can be defined as a system in which the standard costs and revenues…

I Love My Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Standard Amount per Case Dark Chocolate Light Chocolate Standard Price per Pound Cocoa 10 lbs. 7 Ibs. $5.00 S Ibs. 0.4 hr. Sugar 12 lbs. 0.60 Standard labor time 0.5 he Dark Chocolate Light Chocolate Planned production 5.800 cases 11.000 cases Standard labor race $16.00 per he $16.00 per hr. I Love My Chocolate Company does not expect there to be any beginning or ending inventories of cocsa or sugar. At the end of the budget year. I Love My Chocolate Company had the folloing actual results: Dark Chocolate Light Chocolate Actual production (cases) 5.500 11.400 Actual Price per Pound Actual Pounds Purchased and Used Cocoa $5.10 135.500 Sugar 0.55 176.300 Actual Labor Rate Actual Labor Hours Used Dark chocolate $15.70 per hr. 2.000 Light chocolate 16.30 per hr. 5.840 Requiredi 1. Prepare the following variance analyses for berh chocolaces and the socal. based on the actual results and production leveis az the end of the budget year: a. Direct materials price variance, direct materials quantity variance, and socal variance. b. Direct labor rane variance, direct labor time variance, and tocal variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number S 4,735 Unfavorable a. Direct materials price variance Direct materials quantity variance 800 v Unfavorable v Total direct materials cost variance 5.535V Unfavorable v b. Direct labor rate variance Unfavorable v Direct labor time variance Favorable v Total direct labor cost variance Unfavorable

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 11PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...