Assignment:
Analysis of the cost variances for the Bakery.
Standard Quantities and Costs per 50 loaf batch:
Materials: 60 lbs at $2.00 per lb
Labor: 3 hours at $16.00 per hour
Actual for June:
Materials Exp: $2,310
Labor Exp: $1,200
Batches Produced: 20 (Budget was also for 20 batches)
Quantity of Materials Used: 1100 lbs
Number of Labor Hours Worked: 80
Prepare Variance Analysis:
1. Calculate (in Excel) the following and indicate if the variance was favorable or unfavorable:
A. Materials spending variance
B. Materials usage variance
C. Labor spending variance
D. Labor usage variance
2. Draw a variance picture for the Materials Variances