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Using the information provided by computing the following variances. Show all calculations and label your answers clearly. The actual price paid for ingredients $50.00 The
Using the information provided by computing the following variances. Show all calculations and label your answers clearly.
| The actual price paid for ingredients | $50.00 |
| The standard price for ingredients | $49.75 |
| Actual quantity purchased and used | 3.85 lbs. |
| Standard quantity used | 4 lbs. |
| Actual labor rate per hour | $52.50 |
| Standard labor rate per hour | $50.00 |
| Actual hours for cakes produced | 7 hours |
| Standard hours for cakes produced | 6.9 hours |
- Compute the direct material price variance, direct material quantity variance, and total direct materials variance.
- Compute the direct labor rate variance, direct labor time variance, and total direct labor variance.
- After analyzing these variances, should Tom be concerned? Why or why not?
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