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Brussels Chocolate Company produces chocolates in large batches. One batch of chocolate has the ...

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Brussels Chocolate Company produces chocolates in large batches. One batch of chocolate has the ...

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

Edition: 7^th

Authors: Horngren, Datar, Rajan, Beaubien

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