Review how actual production is analyzed by using standard

Question

Flexible Budgeting and Variance Analysis

Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available:

Standard Amount per Case
	Dark Chocolate		Light Chocolate		Standard Price per Pound
Cocoa	11 lbs.		8 lbs.		$5.40
Sugar	9 lbs.		13 lbs.		0.60
Standard labor time	0.50 hr.		0.60 hr.

 

	Dark Chocolate		Light Chocolate
Planned production	5,400 cases		10,100 cases
Standard labor rate	$13.50 per hr.		$13.50 per hr.

Belgian Chocolate does not expect there to be any beginning or ending inventories of cocoa or sugar. At the end of the budget year, Belgian Chocolate had the following actual results:

	Dark Chocolate		Light Chocolate
Actual production (cases)	5,100		10,500
	Actual Price per Pound		Actual Pounds Purchased and Used
Cocoa	$5.50		140,800
Sugar	0.55		177,800
	Actual Labor Rate		Actual Labor Hours Used
Dark chocolate	$13.00 per hr.		2,320
Light chocolate	14.00 per hr.		6,460

Required:

1. Prepare the following variance analyses for both chocolates and total, based on the actual results and production levels at the end of the budget year:

1. Direct materials price variance,direct materials quantity variance, and total variance.
2. Direct labor rate variance,direct labor time variance, and total variance.

Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. If there is no variance, enter a zero.

a.	Direct materials price variance:	$
	Direct materials quantity variance:	$
	Total direct materials cost variance:	$
b.	Direct labor rate variance:	$
	Direct labor time variance:	$
	Total direct labor cost variance:	$

Here is the information given to help from the assignment; I just can't seem to figure out how to do it! Check My Work Feedback a. Price variance is the difference between the actual and standard prices, multiplied by the actual quantity. Quantity variance is the difference between the actual and standard quantities, multiplied by the standard price. Total variance is the price variance plus the quantity variance, considering their identifications as favorable or unfavorable.

b. Labor rate variance is the difference between the actual and standard hourly rates, multiplied by the actual hours. Time variance is the difference between the actual and standard hours, multiplied by the standard rate per hour. Total variance is the rate variance plus the time variance, considering their identifications as favorable or unfavorable.

c. Review how actual production is analyzed by using standard amounts.