Sales Variances for Specialty Candles (for Q1 - Q3) Actual Cost per unit (AC) Actual Quantity Used (AQ) Standard Cost per unit (SC) Estimated Quantity Used (EQ) AC*AQ AQ*SC SC*EQ Cost Variance Quantity Variance Flexible Budget Variance (FBV) Wax (kg) $1.05 2,166,450 $1.04 2,187,281 $2,274,772.50 $2,253,108.00 $2,274,772.50 $21,664.50 $(21,664.50) ($21,664.50) Wick (each) $0.04 1,437,080 $0.04 1,473,007 $58,920.28 $57,483.20 $58,920.28 $1,437.08 $(1,437.08) ($1,437.08) Coloring (grams) $0.01 14,262,470 $0.01 14,262,470 $114,099.76 $114,099.76 $114,099.76 $0.00 $- $0.00 Scent (grams) $0.02 20,675,160 $0.02 20,554,253 $351,477.72 $353,545.24 $351,477.72 ($2,067.52) $2,067.52 $2,067.52 Clip (each) $0.01 1,422,636 $0.01 1,422,636 $14,226.36 $14,226.36 $14,226.36 $0.00 $- $0.00 Cellophane (sq. ft.) $0.01 1,612,570 $0.01 1,645,480 $16,125.70 $15,803.19 $16,125.70 $322.51 $(322.51) ($322.51) Information Stickers (each) $0.03 1,480,408 $0.03 1,480,408 $44,412.24 $44,412.24 $44,412.24 $0.00 $- $0.00 Packing Box (one per batch*) $0.23 123,669 $0.23 123,669 $28,443.87 $28,443.87 $28,443.87 $0.00 $- $0.00 Jars (each) $0.96 1,473,186 $0.95 1,488,693 $1,414,258.56 $1,399,526.70 $1,414,258.56 $14,731.86 $(14,731.86) ($14,731.86) Lids (each) $0.14 1,433,468 $0.14 1,433,468 $200,685.52 $200,685.52 $200,685.52 $0.00 $- $0.00 Apprentice DL (hours) $10.98 17,910 $15.25 12,895 $196,651.80 $273,127.50 $196,651.80 ($76,475.70) $76,475.70 $76,475.70 Candlemaker DL (hours) $26.51 14,410 $26.25 14,554 $382,052.33 $378,262.50 $382,052.33 $3,789.83 $(3,789.83) ($3,789.83) Candle Master DL (hours) $32.17 11,030 $32.25 11,002 $354,824.07 $355,717.50 $354,824.07.

Solve the following questions.

Q-1. What was the specialty candle division's sales volume variance?

 Q-2. What was the specialty candle division's sales price variance?

 Q-3. What is driving the overall sales variance, changes in sales price or sales volume?

 Q-4. What is the overall direct materials quantity variance? 

Q-5. Which one of the direct materials inputs (for example, wax, wicks, or scent) has the largest quantity variance?

 Q-6. What is the actual hourly rate paid to the Candlemakers in the specialty candle division?

 Q-7. What is the overall direct labor rate variance?

 Q-8. Which one of the direct labor types (for example, apprentices) has the largest rate variance?

Answer rating: 100% (QA)

Q1 Sales Volume Variance Impossible to determine from the provided information Sales volume variance ... View the full answer