HANDOUT 5 - VARIANCES THIS HANDOUT CONSISTS OF PARTS A AND B PART A: Demi's Baked Bliss is trying to evaluate the success of their new cake, The Assaad Berry Burst. Using the budgeted and actual data provided below, they have attempted to calculate their direct material variances. Direct Material Standards - May 20Y3 Direct Material Actuals - May 20Y3 Budgeted Sales Volume 2,200 Cakes Actual Sales Volume 2,000 Cakes Standard Quantity of Ingredients 5.00lbs. per cake Ingredients Purchased 12,000lbs. 11,000lbs. Standard Purchase Price $1.40 per lb Actual Purchase Price $1.38perlb. DM VARIANCE AMOUNT AND F/U IS THE VARIANCE ANALYSIS CORRECT? EXPLAIN YOUR ANSWER YOU ARE REQUIRED TO SHOW YOUR WORK IN THE PITCHFORK BELOW Price $240F Quantity $2,800U Sales