Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: ÖS 1.2 pounds as $ 1.50 per pound $12.00 per hour Direct materials Direct labor 0.8 hours During the month of May, the company made 760 cakes and incurred the following actual costs. Direct materials purchased and used (1,060 pounds) $1,378 Direct labor (820 hours) $9,430 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Betty's Bakery has the following standard cost sheet for one unit of its most popular cake:
ÖS
1.2 pounds
as
$ 1.50 per pound
$12.00 per hour
Direct materials
Direct labor
0.8 hours
During the month of May, the company made 760 cakes and incurred the following actual costs.
Direct materials purchased and used (1,060 pounds) $1,378
Direct labor (820 hours) $9,430
Required:
1. Calculate the direct materials price variance.
2. Calculate the direct materials quantity variance.
3. Calculate the direct materials variance.
Transcribed Image Text:Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: ÖS 1.2 pounds as $ 1.50 per pound $12.00 per hour Direct materials Direct labor 0.8 hours During the month of May, the company made 760 cakes and incurred the following actual costs. Direct materials purchased and used (1,060 pounds) $1,378 Direct labor (820 hours) $9,430 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance.
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