Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 Labor Efficiency Variance

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

Principles Of Auditing And Other Assurance Services

Authors: Ray Whittington, Kurt Pany

18th Edition

0077486277, 978-0077486273

More Books

Students also viewed these Accounting questions

Question

plan how to achieve impact in practice from your research;

Answered: 1 week ago