The following information is available for Swifty's Chocolates: Actual production Budgeted production Direct Materials Standard Actual 2,550 boxes 3,600 boxes 4 pounds of chocolate per box @ $6.00 per pound 8,900 pounds purchased @ $6.10 per pound 9,400 pounds used (a) Calculate the direct materials price and quantity variances.
The following information is available for Swifty's Chocolates: Actual production Budgeted production Direct Materials Standard Actual 2,550 boxes 3,600 boxes 4 pounds of chocolate per box @ $6.00 per pound 8,900 pounds purchased @ $6.10 per pound 9,400 pounds used (a) Calculate the direct materials price and quantity variances.
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 10PB: Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![The following information is available for Swifty's Chocolates:
Actual production
2,550 boxes
Budgeted production 3,600 boxes
Direct Materials
Standard
Actual
4 pounds of chocolate per box @ $6.00 per pound
8,900 pounds purchased @ $6.10 per pound
9,400 pounds used
(a) Calculate the direct materials price and quantity variances.
Direct material price variance
Direct material quantity variance
$
$](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8665c90a-e228-4cf6-bf60-57dab8fd52d5%2Fc45f192e-2117-4b82-834a-bd3dcb760082%2F1bzb2k_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following information is available for Swifty's Chocolates:
Actual production
2,550 boxes
Budgeted production 3,600 boxes
Direct Materials
Standard
Actual
4 pounds of chocolate per box @ $6.00 per pound
8,900 pounds purchased @ $6.10 per pound
9,400 pounds used
(a) Calculate the direct materials price and quantity variances.
Direct material price variance
Direct material quantity variance
$
$
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