Question

1. Crazy Delicious Inc. produces chocolate bars. The primary materials used in producing chocolate bars are cocoa, sugar, and milk. The standard costs for a batch of chocolate (2,160 bars) are as follows: Ingredient Quantity Price Cocoa 420 lbs. $0.30 per lb. Sugar 120 lbs. $0.60 per lb. Milk 90 gal. $1.40 per gal.

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

2.

The following data relate to labor cost for production of 7,100 cellular telephones:

Actual:	4,770 hrs. at $13.00
Standard:	4,690 hrs. at $13.20

a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Rate variance	$	Favorable
Time variance	$	Unfavorable
Total direct labor cost variance	$	Unfavorable

Answer 1

Answer

Total manufacturing cost (Standard)

Cocoa (420*0.30) + sugar (120*0.60) + Milk (90*1.40)

126 + 72 +126

324

Standard materials cost per unit = 324 / 2160

0.15 per bar

Answer
	HR	Rate
Actual:	4770	13
Standard:	4,690	13.2
Rate variance=	4770*(13-13.2)
	-$                     954	favorable variance
Time variance=	13.2*(4770-4690)
	$                   1,056	Unfavorable variance
Total variance	$                      102	Unfavorable variance