A large hamburger franchise

(Julia'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.)

Julia's

Standard Direct Materials per Hamburger

1 bun

1 pickle slice

1/4 teaspoon of mustard

1 hamburger patty

1/8 teaspoon of onion

25 g of ketchup

Standard Materials Prices

Buns. . . . . . . . . . . . .$0.10each

Onion. . . . . .$0.08per teaspoon

Hamburger patties. . .$0.19each

Mustard. . . .$0.04 per teaspoon

Pickle slices. . . . . . .$0.03 per slice

Ketchup. . . . .$0.24per 100 g

Assume that a Brandon, MB, Julia'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.)

Julia'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. . . . . . . . . . . . . . .		$0.12	each	Onion. . . . . . . . . .	$0.07	per teaspoon
	Hamburger patties. . . . .		$0.24	each	Mustard. . . . . . .	$0.02	per teaspoon
	Pickle slices. . . . . . . . .		$0.02	per slice	Ketchup. . . . . . . .	$0.28	per 100 g

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 answer to the nearest cent. Enter the results as positive numbers. Label each variance as favourable (F) or unfavourable (U). Enter ketchup's price and quantity in grams.) Price ) x variance Buns X Patties ( |) x Pickles ( Onions ( 1 x Mustard ( Ketchup 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