Question

I love my chocolate company makes dark chcolate and light chocolate. both products require coca and sugar. the following planning has been ,ade available. this is all i can figure out.
1. A Cocoa Sugar Total $ Direct Materials Variance Price variance: Actual price Standard price Variance Actual quantity (lbs.) Direct materials price variance 7.33 7.25 0.08 140,300 11,224 $ 1.35 1.40 0.05 188,000 9,400) (favorable) unfavorable $ $ $ 1,824 140,300 140,000 188,000 190,000 Quantity variance: Actual quantity used (lbs.) Standard quantity used (lbs.) Variance (lbs.) Standard price Direct materials quantity variance—(favorable) unfavorable Total direct materials cost variance {favorable) unfavorable $7.25 2,175 $1.40 2,800) $ $ (625) 1,199 $ Total direct materials cost variance: Actual cost Standard cost Total direct materials cost variance(favorable) unfavorable Dark Chocolate Light Chocolate Total Supporting calculations: Standard quantity used of cocoa: Cases produced Standard amount per case (lbs.) Total Standard quantity used of sugar Cases produced Standard amount per case (lbs.) Total

Answer 1

A Dinact matials vaniance Sugas Tola Coloa pnice vatiane 1.35 Actual price () Standard price ) 33 140 7.25 (0-05) variance () 0.08 Ackual quatity tbs) 40300 188c00 price variance() (9400)1224 124 -favorable)unlaonable Quantity varviantes Actual quantity uscd(910,300 8000 Std. quantity uscd() 1,40,000 19000 300 (2000) 725 1.40 varuiance (tbs) standard pricd ) Qhy vaniance-(Fylarble 2175 (2900) (625) $1199 tost vaiance-unfavonable Matenial cost variance $10,28,399$2/53,% 00 (140,300 X7.3) 88pox135) Actual Cost $266/000 10/15/000 Standaud tost (LY0000x7.25) (1,9opaox1o) $02,200) $1199 $ 13,399 cost vanance

Supporting Caleulations: ught Total Dark sa wed of cocoa So0o l0,c00 Coles produced Std amt pen lasels) 12 $60,000 800co Total (s.) Sugan Cases produced Std.amt pen Case (us) 5et wed of Soco 10/c00 10 14 Total(bs) S0,000400000 ototal Gqiut B Diseel labor variance Daak Role vaniance Actual State 15.25 15 80 oIS So $IS So $(0.25) 0.30 Standard tate vaniae Actual time (hs) 6120 2360 Rat vaniance $ 590) $1836 $1246 faverable) unfaworable

Total Time vaniance Light Dark 6120 6o00 Actual time (has) 2360 tandand tine S0OD X0S) CI 0COX06) Vaniance Chs 2500 120 (140) $ 15 50 915.S0 2110) $1860 Standord tate $B10) Tme vaniance Cast vaniance -avarable)unfauoable $936 labor cost variane 35990 $96,696 (2360x 15.25) (6120xg.vo) 38750 Actual cost $93,000 (2500X1S s0 60ooxISso Standand cost cost vaniance -(favonable) unlavorable 60 $ 3696 $93

2. Standards may be expressed for any level of activity.

Where standards are available for an output other than that has been actually achieved i.e., when standard output and actual output are not equal, we cannot get an idea of variance by comparing the available data.

To be able to make a meaningful comparison straight away, we have to recalculate the standards such that the outputs are the same both in actual data and standard data, thereby enabling us to derive variances by comparison.

The comparison becomes meaningful once we obtain the standards for actual output.