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
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.
please answer within the format by providing formula the detailed working
Please provide answer in text (Without image)
Please provide answer in text (Without image)
Please provide answer in text (Without image)
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 |
$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 |
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
