Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct material is flour. Here are data regarding Bluebird's production activity for the month of May: Standard quantity of flour per batch Standard price per pound of flour Actual price paid for flour Actual quantity of flour purchased and used Spending variance for flour What is the direct material quantity variance for flour? 100 pounds $1.20 per pound $1.35 per pound 5,000 pounds $5,700 favorable
Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct material is flour. Here are data regarding Bluebird's production activity for the month of May: Standard quantity of flour per batch Standard price per pound of flour Actual price paid for flour Actual quantity of flour purchased and used Spending variance for flour What is the direct material quantity variance for flour? 100 pounds $1.20 per pound $1.35 per pound 5,000 pounds $5,700 favorable
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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
Transcribed Image Text:Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary
direct material is flour. Here are data regarding Bluebird's production activity for the month of May:
Standard quantity of flour per batch
Standard price per pound of flour
Actual price paid for flour
Actual quantity of flour purchased and used
Spending variance for flour
What is the direct material quantity variance for flour?
O $4,950 favorable
O $5,250 unfavorable
O $6,450 favorable
$7,650 unfavorable
O None of the above
100 pounds
$1.20 per pound
$1.35 per pound
5,000 pounds
$5,700 favorable
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