You have been invited to interview for an internship with an international food manufacturing company....
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Accounting
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 chocolatier for the month of June.
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Part 1
Requirement 1. Calculate the materials efficiency 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.)
The chocolatier manufactures truffles in 12-piece boxes. The production is labor intensive, and the delicate nature of the chocolate requires a high degree of skill.
Actual
Boxes produced
10,000
Direct materials used in production
13,000 pounds (lbs.)
Actual direct material cost
$78,000
Actual direct manufacturing labor-hours
2,400
Actual direct manufacturing labor cost
$31,200
Standards
Purchase price of direct materials
$7.00 per pound
Materials per box
0.90 pounds
Wage rate
$15.00 per hour
Boxes per hour
6
Actual costs incurred
Actual input qty Budgeted price
Flexible budget
Direct materials
Direct labor
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