Switzer Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts:

Switzer Chocolate Company produced 400 batches of fudge in the most recent month. Actual costs and usage levels were as follows:

Required:
1. Calculate the material price variance.
2. Calculate the material efficiency variance.
3. Calculate the labour price variance.
4. Calculate the labour efficiency variance.

Question

Switzer Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts:
  
Switzer Chocolate Company produced 400 batches of fudge in the most recent month. Actual costs and usage levels were as follows:
  
Required:
1. Calculate the material price variance.
2. Calculate the material efficiency variance.
3. Calculate the labour price variance.
4. Calculate the labour efficiency variance.

Quizplus · Accepted Answer

The Answer of Switzer Chocolate Company produces fudge in large batches. One batch of fudge has the following standard costs and amounts:
  
Switzer Chocolate Company produced 400 batches of fudge in the most recent month. Actual costs and usage levels were as follows:
  
Required:
1. Calculate the material price variance.
2. Calculate the material efficiency variance.
3. Calculate the labour price variance.
4. Calculate the labour efficiency variance.

Switzer Chocolate Company Produces Fudge in Large Batches