Answer:
IMPORTANT NOTE: The data of the calculation was obtained from an online research because you plot the information incomplete.
Explanation:
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Material Price variance = (Standard Rate – Actual Rate) * Actual Quantity
Cocoa: Material price variance = ($7.25 - $7.33) * 140,300
Material price variance = -$11,224
Sugar: Material price variance = ($1.40 - $1.35) * 140,300
Material price variance = $7,015
Total Material price variance = -$4,209 Unfavorable.
Material Quantity variance = (Standard Quantity for actual output – Actual Quantity) * Standard rate
Cocoa:
Standard Quantity for actual output = (12lbs * 5,000 cases + 8lbs * 10,000 cases)
Standard Quantity for actual output = 140,000
Material Quantity variance = (140,000 – 140,300) * $7.25
Material Quantity variance = -$2,175
Sugar:
Standard Quantity for actual output = (10lbs * 5,000 cases + 14lbs * 10,000 cases)
Standard Quantity for actual output = 190,000
Material Quantity variance = (190,000 – 188,000) * $1.4
Material Quantity variance = $2,800
Total Material Quantity Variance = $625 Favorable
Total Material Cost Variance = Material Price variance + Material Quantity variance
Total Material Cost Variance = -$4,209 + $625
Total Material Cost Variance = -$3,584 Unfavorable.
Labor Rate variance = (Standard labor Rate – Actual labor Rate) * Actual Labor Hours
Dark Chocolate: Labor Rate variance = ($15.5 - $15.25) * 2,360
Labor Rate variance = $590
Light Chocolate: Labor Rate variance = ($15.5 - $15.8) * 6,120
Labor Rate variance = -$1,836
Total Labor Rate variance = -$1,246 Unfavorable.
Labor Time variance = (Standard hours allowed – Actual hours worked) * Standard rate
Dark Chocolate:
Labor Time variance = (5,000 cases * 0.5 hour per case – 2,360) * $15.5
Labor Time variance = (2,500 hours – 2,360 hours) * $15.5
Labor Time variance = $2,170
Light Chocolate:
Labor Time variance = (10,000 cases * 0.6 hour per case – 6,120) * $15.5
Labor Time variance = (6,000 hours – 6,120 hours) * $15.5
Labor Time variance = -$1,860
Total Labor Time Variance = $310 Favorable
Total Labor Cost Variance = Labor Rate variance + Labor Time variance
Total Material Cost Variance = -$1,246 + $310
Total Material Cost Variance = -$936 Unfavorable.
