Question - Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.
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Standard Cost per unit
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Cost/Unit
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Amount/Unit
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Standard Cost
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Material Cost (Ingredients) (.5 lbs)
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2.29
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.5 lbs
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$4.85
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Direct labor (.25 hrs * $9/hr)
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2.25
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.25 hrs
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$9.00
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Overhead
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0.57
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|
|
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Total
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5.11
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During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998.
Required: Compute the material price and quantity variance.
Material Price Variance =
Material Quantity Variance =
Labor Rate Variance =
Labor Efficiency Variance =