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ashly138 ashly138
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5 years ago
Brussels Chocolate Company produces chocolates in large batches. One batch of chocolate has the following standard costs and amounts:

Standard kilograms of sugar   125
Standard cost per kilogram of sugar   $1.60
Standard direct labour hours    0.75
Standard direct labour cost per hour   $21.00

Brussels Chocolate Company produced 600 batches of chocolates in the most recent month. Actual input costs and per batch usage levels were as follows:

Actual kilograms of sugar used   126
Actual cost per kilogram of sugar   $1.65
Actual direct labour hours   0.80
Actual direct labour cost per hour   $20.75

Required:
a.   Calculate the total material input rate variance.
b.   Calculate the total material efficiency variance.
c.   Calculate the total labour rate variance.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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MunihasenMunihasen
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More solutions for this book are available here
a.   Material input rate variance

   (($1.60 - $1.65) × 126 kg.) × 600 batches = $3,780 unfavourable

b.   Material efficiency variance

   ((125 kg. - 126 kg.) × $1.60) × 600 batches = $960 unfavourable

c.   Labour rate variance

   (($21.00 - $20.75) × 0.8 hours) × 600 batches = $120 favourable

d.   Labour efficiency variance

   ((0.75 hours - 0.8 hours) × $21.00) × 600 batches = 630 unfavourable
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ashly138 Author
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5 years ago
Thank you, thank you, thank you!
dedricgard
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Yesterday
Thanks
amandamraz
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2 hours ago
Thanks for your help!!
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