Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Can you please show your work? Calculation: Delicious Donuts makes and sells custom donuts, which it plans to sell for $2 each. For 20X1, Delicious
Can you please show your work?
Calculation: Delicious Donuts makes and sells custom donuts, which it plans to sell for $2 each. For 20X1, Delicious planned to order 10,000 lbs of flour at $0.50/lb to make the 100,000 donuts it planned for the year (that's .1 lbs/unit). The company also planned to pay bakers $10/hour to make donuts; it is estimated that each donut requires 3 minutes to make (that's 0.05 hours). The actual performance of the company was slightly different than planned. Donuts sold for $1.75/each, and Delicious was able to sell 125,000 donuts. The company used 11,000 lbs of flour to make those donuts at a cost of $0.60/lb. The labor cost Delicious exactly $10/hour as it had expected, but each donut took 6 minutes to make (that's 0.10 hours). What is the Direct Materials Efficiency Variance? 350 Unfavorable OO No Variance 750 Favorable None of the choices is correct. 62,500 UnfavorableStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started