Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tasty Creations is a manufacturer of pumpkin pies. For September 2020 , the company's operating budget included the following: Actual results were as follows: Sales(units-actualquantity)AveragesellingpriceperpieDirectmaterialscostsperpieTotalfixedcostsforthemonth465,000$4.60$1.65$355,000
Tasty Creations is a manufacturer of pumpkin pies. For September 2020 , the company's operating budget included the following: Actual results were as follows: Sales(units-actualquantity)AveragesellingpriceperpieDirectmaterialscostsperpieTotalfixedcostsforthemonth465,000$4.60$1.65$355,000 Tasty Creations' CEO observed that September's operating income was lower than anticipated and has asked you to prepare a report outlining the reasons for the discouraging results. Required: 1. Calculate the total materials variance for September. 2. Calculate the materials price variance and materials usage variance for September, indicating whether the variances are favourable or unfavourable. 3. Prepare a brief memo for the CEO of Tasty Creations that discusses the reported operating income for September
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started