Question
Bob is the controller for a large supercenter retailer based in California. She is reviewing the accounting data for an average superstore location's bakery, and
Bob is the controller for a large supercenter retailer based in California. She is reviewing the accounting data for an average superstore location's bakery, and assessing the variances for the store-made cupcakes. Please review the following data and help Ms. White determine the variance listed below:
| Meijer Bakery Standard Cost Card | |||
| Inputs | Standard Amount | Standard Price/Rate | Standard Cost |
| Direct Materials | 2 lbs. | $1.50/lb | $ 3.00 |
| Direct Labor | 0.2 DLH | $12/DLH | $ 2.40 |
| Variable Mfg Overhead | 0.2 DLH | $15/DLH | $ 3.00 |
| Total Standard Cost/Unit | $ 8.40 | ||
| Budgeted Production | 20,000 |
| Budgeted Sales Price | $ 10.00 |
| Budgeted Fixed Overhead | $ 15,000 |
| Actual Production | 21,000 |
| Actual Revenue | $ 207,900 |
| Actual Fixed Overhead | $ 15,400 |
| Actual Direct Materials Purchased | 45,000 |
| Actual Price of Direct Materials | $ 1.49 |
| Actual Direct Materials Used | 41,000 |
| Actual Direct Labor Hours | 4,000 |
| Actual Direct Labor Cost | $ 45,600 |
| Actual Variable OH Cost | $ 65,000 |
What is the Materials Price Variance for the cupcakes?
What is the Materials Quantity Variance for the cupcakes?
What is the Labor Rate Variance for the cupcakes?
What is the Labor Efficiency Variance for the cupcakes?
What is the Variable Overhead Spending Variance for the cupcakes?
What is the Variable Overhead Efficiency Variance for the cupcakes?
What is the Operating Income Volume Variance for the cupcakes?
What is the Production Volume Variance for the cupcakes?
What is the Fixed Overhead Spending Variance for the cupcakes?
What are the journal entries for the Direct Materials variances for the cupcakes?
What are the journal entries for the Direct Labor variances for the cupcakes?
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Intermediate Accounting Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
13th Canadian Edition
1119740444, 9781119740445
