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Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct materials Direct labor SP SQ 1.2 pounds 0.8 hours $ 12.00 per hour $ 1.50 per pound During the month of May, the company made 640 cakes and incurred the following actual costs: Direct materials purchased and used (940 pounds), $1,222 Direct labor (700 hours), $8,050 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places. 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5. Direct labor efficiency variance 6. Total direct labor spending variance F

Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct materials Direct labor SP SQ 1.2 pounds 0.8 hours $ 12.00 per hour $ 1.50 per pound During the month of May, the company made 640 cakes and incurred the following actual costs: Direct materials purchased and used (940 pounds), $1,222 Direct labor (700 hours), $8,050 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places. 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5. Direct labor efficiency variance 6. Total direct labor spending variance F

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct materials Direct labor SP SQ 1.2 pounds 0.8 hours $ 12.00 per hour $ 1.50 per pound During the month of May, the company made 640 cakes and incurred the following actual costs: Direct materials purchased and used (940 pounds), $1,222 Direct labor (700 hours), $8,050 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places. 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5. Direct labor efficiency variance 6. Total direct labor spending variance F
Transcribed Image Text:Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct materials Direct labor SP SQ 1.2 pounds 0.8 hours $ 12.00 per hour $ 1.50 per pound During the month of May, the company made 640 cakes and incurred the following actual costs: Direct materials purchased and used (940 pounds), $1,222 Direct labor (700 hours), $8,050 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials spending variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Round your intermediate calculations to two decimal places. 1. Direct materials price variance 2. Direct materials quantity variance 3. Total direct materials spending variance 4. Direct labor rate variance 5. Direct labor efficiency variance 6. Total direct labor spending variance F
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