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