The standard costs for a batch of chocolate

Question

Standard Direct Materials Cost per Unit

Bavarian Chocolate Company produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (1,880 bars) are as follows:

Ingredient	Quantity		Price
Cocoa	600	lbs.	$0.30		per lb.
Sugar	180	lbs.	$0.80		per lb.
Milk	150	gal.	$1.60		per gal.

Determine the standard direct materials cost per bar of chocolate. If required, round to the nearest cent.
$ _________________ per bar

2.

eBookeBookeBook Standard Product Cost Hickory Furniture Company manufactures unfinished oak furniture. Hickory uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows: Direct labor: standard rate $26.00 per hr. standard time per unit 4.5 hrs. Direct materials (oak): standard price $9.00 per bd. ft. standard quantity 20 bd. ft. Variable factory overhead: standard rate $2.40 per direct labor hr. Fixed factory overhead: standard rate $1.60 per direct labor hr. a. Determine the standard cost per dining room table. If required, round your answer to two decimal places. $ _________________ per table b. A standard cost system provides Hickory Furniture management a cost control tool using the principle of _________________ . Using this principle, _________________ cost deviations from standards can be investigated and corrected.

3.eBookeBookeBook

Budget Performance Report

Warwick Bottle Company (WBC) manufactures plastic two-liter bottles for the beverage industry. The cost standards per 100 two-liter bottles are as follows:

Cost Category		Standard Cost per 100 Two-Liter Bottles
Direct labor			$1.14
Direct materials			6.12
Factory overhead			0.42
	Total		$7.68

At the beginning of March, WBC management planned to produce 530,000 bottles. The actual number of bottles produced for March was 570,000 bottles. The actual costs for March of the current year were as follows:

Cost Category		Actual Cost for the Month Ended March 31, 2014
Direct labor						$6,370
Direct materials						34,050
Factory overhead						2,420
	Total					$42,840

Enter all amounts as positive numbers.

a. Prepare the March manufacturing standard cost budget (direct labor, direct materials, and factory overhead) for WBC, assuming planned production. Warwick Bottle Company Manufacturing Cost Budget For the Month Ended March 31, 2014 Standard Cost at Planned Volume (530,000 Bottles) Manufacturing costs: Direct labor $ Direct materials Factory overhead Total $

b. Prepare a budget performance report for manufacturing costs, showing the total cost variances for direct materials, direct labor, and factory overhead for March. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Warwick Bottle Company Manufacturing Costs-Budget Performance Report For the Month Ended March 31, 2014 Actual Costs Standard Cost at Actual Volume (570,000 Bottles) Cost Variance-(Favorable) Unfavorable Manufacturing costs: Direct labor $ $ $ Direct materials Factory overhead Total manufacturing cost $ $ $

c. The Company's actual costs were $936 _________________ than budgeted. _________________ direct labor and direct material cost variances more than offset a small _________________ factory overhead cost variance.