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bernie2981 bernie2981
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Posts: 3810
8 years ago
Dozen Bakery makes cupcakes and cookies. Dozen gathered the following information for the current year regarding its use of flour and butter (flour is a direct material for cupcakes and butter is a direct material for cookies):

   Flour (Direct Materials)
Cupcakes   Butter (Direct Materials)
Cookies
Standard quantity per batch   2 lbs.   3 lbs.
Standard Price (SP) per pound of sugar   $2.50/lb   ?
Actual quantity purchased (AQP)and used per batch (pounds)   ?   4 lbs.
Actual Price (AP) paid    $3.00/lb.   $5.50/lb.
Price variance   $300 U   $1,200 U
Quantity variance   $500 F   ?
Flexible budget variance   ?   $3,100 U
Number of units produced   350   400

What is the direct materials flexible budget variance for the flour in cupcakes?
A) $200 favorable
B) $800 favorable
C) $800 unfavorable
D) $200 unfavorable
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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8 years ago
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bernie2981 Author
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8 years ago
Wow! Thank you
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