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Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a

Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies):

Flour (Direct Materials)

Cupcakes

Butter (Direct Materials)

Cookies

Standard quantity per batch

2 lbs.

3 lbs.

Standard Price (SP) per pound

$2.50/lb

?

Actual quantity purchased (AQP)and used per batch (pounds)

?

4 lbs.

Actual Price (AP) paid

$3.00/lb.

$5.50/lb.

Price variance

$300 U

$1,200 U

Quantity variance

$500 F

?

Flexible budget variance

?

$3,100 U

Number of units produced

350

400

What is the direct material quantity variance for butter in the cookies?

A.

$2,900 favorable

B.

$2,900 unfavorable

C.

$1,900 unfavorable

D.

$1,900 favorable

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