Compute direct materials price variances (Learning Objective 4)

Refer to the McDonald’s Data Set on page 643.

Actual prices paid for ingredients purchased during the week were:

1. Compute the direct materials price variance for each ingredient.
2. As a manager, what would you learn from the variances and supporting data?

Transcribed Image Text:

Buns Hamburger patties Pickle slices. $0.12 each $0.25 each $0.02 per slice Onion.............. $0.07 per teaspoon Mustard $0.01 per teaspoon Ketchup... $0.12 per ounce