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Flexible Budgeting and Variance Analysis Belgian Chocolate Company makes dark ch

ID: 2376621 • Letter: F

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:

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:

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:

Use the minus sign to enter favorable variances as negative numbers.

a. Direct materials price variance: $ SelectFavorableUnfavorableItem 2 Direct materials quantity variance: $ SelectFavorableUnfavorableItem 4 Total direct materials cost variance: $ SelectFavorableUnfavorableItem 6 b. Direct labor rate variance: $ SelectFavorableUnfavorableItem 8 Direct labor time variance: $ SelectFavorableUnfavorableItem 10 Total direct labor cost variance: $ SelectFavorableUnfavorable Belgian Chocolate Company makes dark chocolate and light chocolate. Both products require cocoa and sugar. The following planning information has been made available: 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: 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:

Explanation / Answer

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