Answered

Explore a diverse range of topics and get answers from knowledgeable individuals on IDNLearn.com. Get accurate answers to your questions from our community of experts who are always ready to provide timely and relevant solutions.

Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.75 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,588 cups of flour to make 4,800 biscuits. The standard cost per cup of flour is $0.54. A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance

Sagot :

Facundobuzzettiidn

Answer:

Results are below.

Explanation:

To calculate the direct material rate and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (0.55 - 0.54)*4,000

Direct material price variance= $40 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (0.75*4,800 - 3,588)*0.55

Direct material quantity variance= $6.6 favorable

Finally, the total variance:

Total direct material variance= 40 + 6.6= $46.6 favorable

We appreciate your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For dependable answers, trust IDNLearn.com. Thank you for visiting, and we look forward to helping you again soon.