23 is getting me 22) 22) Razzle Baking Company gathered the following actual res

Question

23 is getting me

22) 22) Razzle Baking Company gathered the following actual results for the current month: 5,500 Actual amounts Units produced $25,000 Direct materials purchased and used (7.500 Ibs.) Budgeted production and standard costs were: Budgeted production Direct materials 5,000 units 1.5 lbs/unit at 53/lb. What is the direct materials price variance? A) $2,750 favorable C $2,500 unfavorable B) $2.500 favorable D) $2,750 unfavorable Mar ce of hould 23) 23) 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) eater Flour (Direct Materials) Cupcakes 2 lbs. $2.50/1b Butter (Direct Materials) Cookies 3 lbs Standard quantity per batch Standard price per pound of sugar Actual quantity purchased and used batch (pounds) Actual price paid Price variance Quantity variance Flexible budget variance Number of units produced per 4 lbs. $3.00/lb $300 U $500 F $5.50/lb $500 F $2,400 F 400 350 The actual direct material quantity used per batch for Cupcakes would be closest to A) 0.4 lbs. B) 2.0 lbs. C) 2.9 lb. D) 1.42lbs.

Explanation / Answer

22)MATERIAL price variance =actual cost - [AQ*SR]

           25000- [7500*3]

           25000 - 22500

            2500 U

CORRECT OPTION is "C"

23)Material quantity variance =SR[AQ-SQ]

   -500 = 2.5 [AQ- (350* 2)]

- 500 /2.5 [AQ- 700]

   - 200+700 = AQ

      AQ = 500 used

AQ per batch = 500/350 =1.42

correct option is " D"

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.