Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bettys Bakery has the following standard cost sheet for one unit of its most popular cake: During the month of May, the company made 740

Bettys Bakery has the following standard cost sheet for one unit of its most popular cake:

image text in transcribed

During the month of May, the company made 740 cakes and incurred the following actual costs:

Direct materials purchased and used (1,040 pounds), $1,352

Direct labor (800 hours), $9,200

Required:

  1. Calculate the direct materials price variance.
  2. Calculate the direct materials quantity variance.
  3. Calculate the direct materials spending variance.
  4. Calculate the direct labor rate variance.
  5. Calculate the direct labor efficiency variance.
  6. Calculate the direct labor spending variance.

Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places.

image text in transcribed \begin{tabular}{llr} & SQ & SP \\ Direct materials & 1.2 pounds & $1.50 per pound \\ Direct labor & 0.8 hours & $12.00 per hour \end{tabular} Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Accounting On Aix

Authors: IBM Redbooks

1st Edition

0738418501, 978-0738418506

More Books

Students also viewed these Accounting questions