Bravo Baking uses standard costing to analyze its performance.The data below is provided for your use in determining Bravo's variances.Standard Cost per unit Cost /Unit Amount/Unit Standard Cost.
- Material Cost (Ingredients) (.5 lbs) 2.29 .5 lbs $4.58
- Direct Labor( .25 hrs * $9/hr) 2.25 .25 hrs $9.00
- Overhead 0.57
- Total 5.11
During the month,bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients.Also during the month,Bravopurchased 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:
Part a. Compute the material price and quantity variance.
- Material Price Variance = ( - ) *= Fav/Unf >
- Material Quantity Variance = ( - ) *= Fav/Unf
- Labor Rate Variance = ( - ) *= Fav/Unf >
- Labor Efficiency Variance = ( - ) *= Fav/Unf