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 Requirement 1. Calculate the materials officiency 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) Actual input aty Actual costs incurred Budgeted price Flexible budget Direct materials Direct labor Now compute the variances and label each amount as favorable (F) or unfavorable (U). The materials efficiency variance is The materials price variance is N O The labor efficiency variance is I The labor price variance is Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

Actual costs incurred Flexible Budget Actual input qty X Budgeted price € 64,500 € 13,200 Direct materials Direct labor € 60,200 € 12,650 € 60,000 € 12,000 NOTE: Actual input qty x Budgeted price for Direct materials = 2150000 g x 0.03 euros = 64500 euros; Actual input qty x Budgeted price for Direct labor = 1100 hours x 12 euros = 13200 euros; Flexible Budget for Direct materials = 10000 units x 200 g x 0.03 euros = 60000 euros; Flexible Budget for Direct labor = 10000 units x (1/10) hours x 12 euros = 12000 euros; Material Price Variance = Actual grams used x (Standard Price per gram - Actual Price per gram) Actual quantity used (grams) 2,150,000 g Standard price per gram € 0.03 (Given] Actual price per gram € 0.028 [60200 euros / 2150000 gram] Material Price Variance €4,300 F [It is favorable as actual price is less than the standard price per gram] [2150000 g x (0.03 euros - 0.028 euros)]

Material Quantity Variance = (Standard grams required - Actual grams used) x Standard Price per gram Standard grams required 2,000,000 (10000 boxes x 200 g] Actual quantity used (grams) 2,150,000 g Standard price per gram € 0.03 (Given] Material Quantity Variance €4,500 U [It is unfavorable as actual quantity used is more than the standard quantity required] [(2000000 - 2150000) grams x 0.03 euros] Direct Labor Rate Variance = Actual hours used x (Standard Rate per hour - Actual Rate per hour) Actual direct labor hours worked 1,100 Standard labor rate per hour € 12.00 (Given] Actual labor rate per hour € 11.50 [12650 euros / 1100 hours] Direct Labor Rate Variance €550 F [It is favorable as actual rate is less than the standard rate per hour] [1100 DLHs x (12.00 euros - 11.50 euros)] Standard labor hours allowed 1,000 (10000 boxes x (1/10) hours] Actual direct labor hours worked 1,100 Standard labor rate per hour € 12.00 (Given] Direct Labor Efficiency Variance €1,200 U [It is unfavorable as actual hours used is more than the standard hours required] [(1000 - 1100) DLHs x 12.00 euros]