Question

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 Belgian chocolatier for the month of June. : (Click the icon to view the data.) Read the requirements. A Data Table Requirement 1. Calculate the materials efficiency and price variance and the wage and labor efficiency variances for the month of May. Label each amount as favorable (F) or unfavorable (U). (Round all intermediary calculations and your final answers to the nearest whole number.) The materials efficiency variance is 3,000 U 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. The materials price variance is F Actual Boxes produced Direct materials used in production Actual direct material cost Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 11,500 2,450,000 g 36,750 euro 1,200 14,040 euro Standards Purchase price of direct materials Materials per box Wage rate Boxes per hour 0.02 euros/g 200 g 12.04 euro/hour 10 Print Done Choose from any list or enter any number in the input fields and then click Check Answer.

Answer 1

Actual Direct materials used in production (AQ) Actual direct material cost Actual cost per gram (36,750 / 2,450,000) (AP) Standard material per box Actual box produced Standard material required for actual production (SQ) 2,450,000 36,750 euro 0.015 euros/g 200 g 11,500 (11,500 x 200) 2,300,000 0.02 euros/g Standard price per gram (SP) Materials efficiency variance SP (AQ-SQ) 0.02 x (2,450,000 -2,300,000) 3,000 Unfavorable Material price variance AQ (AP-SP) 2,450,000 < (0.015 -0.02) 12,250 Favorable Material efficiency variance Material price variance 3,000U 12,250F

Wage and Efficiency Variance Actual Direct materials labor hours (AH) Actual direct labor cost Actual cost per hour (14,040 / 1,200) (AR) Standard boxes per hour Actual box produced Standard hours required for actual production (SH) 1,200 14,040 euro 11.70 euros/hour 10 11,500 (11,500 / 10) 1,150 12.04 euros/hour Standard rate per hour (SR) labor efficiency variance SR (AH-SH) 12.04 (1,200 -1,150) 602 Unfavorable Wage variance AH X (AR-SR) 1,200 x (11.70 - 12.04) 408 Favorable Labor efficiency variance Wage variance 602U 408 F