Question
Rafael owns a fruit smoothe shop. Each smoothie requires 1/5 pound of mixed berries, which are expected to cost $3 per pound during the summer.
Rafael owns a fruit smoothe shop. Each smoothie requires 1/5 pound of mixed berries, which are expected to cost $3 per pound during the summer. Employees are paid $12 per hour. Variable overhead is allocated at a rate of $0.10 per minute of direct labor time. Each smoothie requires 4 minutes of direct labor time.
During the month of July, Rafael purchased and used 900 pounds of mixed berries at a cost of $3.40 per pound.
Rafael's shop sold 4,200 smoothies during the month.
Calculate the DM price variance for July.
Calculate the DM quantity variance for July.
Calculate the TOTAL DM variance for July.
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