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Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ 1.2 pounds 0.8 hours SP Direct materials $ 1.50 per pound $12.00 per hour Direct labor During the month of May, the company made 1,000 cakes and incurred the following actual costs. Direct materials purchased and used (1,540 pounds) $2,002 Direct labor (1,060 hours) $12,190 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfa effect (i.e., zero variance).)

Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ 1.2 pounds 0.8 hours SP Direct materials $ 1.50 per pound $12.00 per hour Direct labor During the month of May, the company made 1,000 cakes and incurred the following actual costs. Direct materials purchased and used (1,540 pounds) $2,002 Direct labor (1,060 hours) $12,190 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfa effect (i.e., zero variance).)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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If you can please answer all parts otherwise 4, 5 and 6

Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ SP Direct materials Direct labor $ 1.50 per pound $12.00 per hour 1.2 pounds 0.8 hours During the month of May, the company made 1,000 cakes and incurred the following actual costs. Direct materials purchased and used (1,540 pounds) $2,002 Direct labor (1,060 hours) $12,190 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavo effect (i.e., zero variance).) 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
Transcribed Image Text:Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: SQ SP Direct materials Direct labor $ 1.50 per pound $12.00 per hour 1.2 pounds 0.8 hours During the month of May, the company made 1,000 cakes and incurred the following actual costs. Direct materials purchased and used (1,540 pounds) $2,002 Direct labor (1,060 hours) $12,190 Required: 1. Calculate the direct materials price variance. 2. Calculate the direct materials quantity variance. 3. Calculate the direct materials variance. 4. Calculate the direct labor rate variance. 5. Calculate the direct labor efficiency variance. 6. Calculate the direct labor spending variance. (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavo effect (i.e., zero variance).) 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
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