Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Bothproducts require cocoa and sugar. The following planning information has been madeavailable:CocoaSugarStandard labor timePlanned productionStandard labor rateActual production (cases)CocoaSugarDark chocolateLight chocolateActual Price per Pound$4.901.24Required:a.Dark Chocolate4,000 cases$15.50 per hr.Standard Amount Standard Amountper Caseper CaseDark ChocolateLight ChocolateSharon's Delights Chocolate Company does not expect there to be any beginning orending inventories of cocoa or sugar. At the end of the budget year, Sharon's DelightsChocolate Company had the following actual results:Dark ChocolateLight Chocolate4,500Actual Labor Rate$15.25 per hr.15.80 per hr.8 lbs.5 lbs.0.50 hr.Direct materials price varianceDirect materials quantity varianceTotal direct materials cost varianceb.Direct labor rate varianceDirect labor time varianceTotal direct labor cost variance$Actual Quantity Purchased and Used$$1. Prepare the following variance analyses for both chocolates and the total, based onthe actual results and production levels at the end of the budget year. Enter a favorablevariance as a negative number using a minus sign and an unfavorable variance as apositive number.a. Direct materials price variance, direct materials quantity variance, and totalvariance.b. Direct labor rate variance, direct labor time variance, and total variance.$6 lbs.Light Chocolate7,500 cases$15.50 per hr.85,00053,000$4 lbs.0.60 hr.$0008,000Actual Labor Hours Used2,2004,4004,220 X60 XStandard Priceper Pound$4.751.20Unfavorable ✔Unfavorable ✔Unfavorable ✔Unfavorable ✓Favorable ✓Favorable ✓

Name: Sharon's Delights Chocolate Company makes dark chocolate and light ch
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Description: Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Bothproducts require cocoa and sugar. The following planning information has been madeavailable:CocoaSugarStandard labor timePlanned productionStandard labor rateActual pr

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Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Sugar Standard labor time Standard Amount Standard Amount per Case Dark Chocolate 8 lbs. 5 lbs. 0.50 hr. per Case Light Chocolate 6 lbs. 4 lbs. 0.60 hr. Standard Price per Pound $4.75 1.20

Sharon's Delights Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: Cocoa Sugar Standard labor time Standard Amount Standard Amount per Case Dark Chocolate 8 lbs. 5 lbs. 0.50 hr. per Case Light Chocolate 6 lbs. 4 lbs. 0.60 hr. Standard Price per Pound $4.75 1.20

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 21BEA

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