Question

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):

	Flour​ (Direct Materials) Cupcakes	Butter​ (Direct Materials) Cookies
Standard quantity per batch	44 lbs.	33 lbs.
Standard Price​ (SP) per pound	$ 0.40$0.40​/lb.	​?
Actual quantity purchased​ (AQP) and used per batch​ (pounds)	​?	44 lbs.
Actual Price​ (AP) paid	0.70.7​/lb.	$ 4.32$4.32​/lb.
Price variance	$ 240$240 U	$ 1 comma 100$1,100 U
Quantity variance	​?	​?
Flexible budget variance	​?	$ 3 comma 200$3,200 U
Number of batches produced	360360	550550

The actual direct material quantity used per batch for Cupcakes may be closest to?

A. 2472,247

lbs.

B.

0.50.5

lbs.

C.

2.22.2

lbs.

D.

0.60.6

lb.

Answer 1

Ansten Pageno Actual quantity used for Cupcakes Can be Caluclated using parice variance" Borice variance = (standard price _ Actual prices Per pound Perpound, x Actual quantity ६२५० 0 ($0.40 – $0-4 )x Actualquantity * Actual quantitywled used 240 0.3 Actual quantity used - 240 -0.3 Actual quantity wled = 300 pounds No of batches Actual quantity perbatch 800 360 360 = 2.2222 2.2 db Actual quantity Pear batch = 2.2 db .::option c" iş Coorrect Anaweor.