Reference no: EM132552442

In 2015, Sweet Treats estimated the following standard costs for one of their most well-loved products, the sensational cherry pie which had a brown sugar coating on the top of the crust as well as including cinnamon and mince ingredients in addition to the cherries.

                         Budgeted quantity                   Budgeted price

Direct materials          1.5 pounds                    $7.25 per pound

Direct labour                     0.25 hours                    $14.00 per hour

During September, they produced and sold 1,200 pies using 1,875 pounds of direct materials at an average cost per pound of $7.00 for the direct material and 280 direct labour hours at an average wage of $14.25 per hour.

Question 1. Calculate the direct material quantity variance

Question 2. Calculate the direct material price variance

Question 3. Calculate the direct labour efficiency variance

Question 4. Calculate the direct labour rate variance

Question 5. Briefly explain the meaning of these variances clearly stating weather there was an overall favourable or unfavourable variance?