Question
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
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 forcookies):
| 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 |
The actual direct material quantity used per batch for Cupcakes may be closest to
A.2.0 lbs.B.2.9 lb.C.1.7 lbs.D.0.4 lbs.Step by Step Solution
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Managerial Accounting
Authors: Ronald W Hilton
7th Edition
0073022853, 978-0073022857
