Question
Delicious donuts makes and sells custom donuts, which it plans to sell for $2 each. For 20x1, they planned to order 10000 lbs of flour
Delicious donuts makes and sells custom donuts, which it plans to sell for $2 each. For 20x1, they planned to order 10000 lbs of flour at $0.50/lb to make 100,000 donuts they planned for the year (thats .1lbs/unit). The company also planned to pay bakers $10/hour to bake, it is estimated it takes 3 minutes to make a donut (or .05 hours). The actual performance of the company differed slightly from planned. Donuts sold at $1.75 each and they sold a total of 125000 donuts. The company used 11000 pounds of flour at a cost of $0.60/lb. The labor cost $10/hour as expected, but each donut took 6 minutes to make (or .1 hours). What is the Direct materials efficiency value?
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