REQUIREMENT 2 OPTIONS

[LESS] / [MORE]

[HIGHER] / [LOWER]

[FEWER] / [MORE]

[LESS] / [MORE]

[FASTER] / [SLOWER]

[HIGHER] / [LOWER]

[FAULTY MATERIAL] / [FAULTY MATERIALS, UNDERSKILLED WORKERS, OR A COMBINATION OF BOTH] / [UNDERSKILLED WORKERS]

[ADDITIONAL TRAINING] / [INCREASED WAGES] / [MORE RELAXED TIME STANDARDS] / [REGULARLY SCHEDULED EQUIPMENT MAINTENANCE]

[NEEDED TO PROPERLY MAINTAIN THE EQUIPMENT] / [NEEDED TO PROPERLY SCHEDULE THE WORK MORE EFFICIENTLY] / [NEEDED TO RENEGOTIATE THE TERMS FOR MATERIALS PURCHASES] / [WASTING BOTH TIME AND MATERIALS]

X i Data Table 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 Direct materials used in production 10,000 2,150,000 g 60,200 euro Actual direct material cost 1,100 Actual direct manufacturing labor-hours Actual direct manufacturing labor cost 12,650 euro Standards 0.03 euros/g Purchase price of direct materials Materials per box Wage rate 200 g 12.00 euro/hour Boxes per hour 10 Print Done 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 Belgian chocolatier for the month of June. Click the icon to view the data.) Read the requirements. 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.) Actual input qty Actual costs X incurred Budgeted price Flexible budget Direct materials Direct labor Now compute the variances and label each amount as favorable (F) or unfavorable (U). The materials efficiency variance is The materials price variance is The labor efficiency variance is The labor price variance is Requirement 2. Discuss some possible causes of the variances you have calculated. Can you make any possible connection between the material and labor variances? What recommendations do you have for future improvement? The materials price and efficiency variances could be an indication that the company purchased expensive ingredients of quality, which resulted in than the standard number of rejected V work pace and a V than normal amount of rejects or waste. units. The labor price variance suggests that experienced workers may have worked more, resuting in a The company should determine the cause of the rejects. The cause could be Perhaps will help. If rejects are not the problem, employees may be