A large hamburger franchise (Jim's) has documented the standard direct materials quantities and standard materials prices for its regular hamburger Click the icon to view standard direct materials and standard materials prices.) Assume that a Victoria, BC, Jim's sold 5,000 hamburgers yesterday and purchased and used the following materials. (Click the icon to view actual materials used and actual materials prices paid.) 1. Compute the direct materials price variance for each Ingredient. 2. As a manager, what would you learn from the variances and supporting data? Requirement 1. Compute the direct materials price variance for each ingredient. First, select the formula labels then compute the direct materials price variances for each ingredient when 5,000 hamburgers were sold. (Round your a numbers. Label each variance as favourable (F) or unfavourable (U). Enter ketchup's price and quantity in grams.) Price X variance Buns ) Patties X Pickles > Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. As a manager what would you learn from the variances and supporting While the per unit afferences between actual and standard price w these once volume uken into account. The variance in the paced for each hantverpentynosented up costing the company and just for one production. The bun varande amounted for store day Management wit Choose from starter any number in this and then continue to the next question i Data Table del nd re Jim's & 1 bun Standard Direct Materials per Hamburger 1 pickle slice 1/4 teaspoon of mustard 1/8 teaspoon of onion 25 g of ketchup Standard Materials Prices 1 hamburger patty Onion . Buns $0.10 each Hamburger patties ... $0.22 each Pickle slices. $0.03 per slice Mustard .. $0.08 per teaspoon $0.08 per teaspoon I $0.25 per 100 g Ketchup ti st Print Done TOTOOOTTOTTON GooCOTT X material i Data Table hamburg s used a e for each the varian Jim's Actual ingredients used to produce 5,000 hamburgers 5,150 buns 4,800 pickle slices 1,400 teaspoons of mustard 5,100 hamburger patties 800 teaspoons of onion 125.5 kg of ketchup Actual Materials Prices Buns $ 0.13 each Onion $0.07 per teaspoon Hamburger patties $ 0.26 each Mustard $0.02 per teaspoon Pickle slices $ 0.02 per slice Ketchup $0.29 per 100 g ou learn and stan ed up cos eva da Print Done in the inple Requirement 2. As a manager, what would you learn from the variances and supporting data? While the per unit differences between actual and standard prices are we see that these variances once volume is taken into account. The variance in the price paid for each hamburger patty has ended up costing the company an extra $ just for one day's production. The bun variance amounted to $ for just one day. Management will
