Reference no: EM133121106
Question - In November DC Desserts produced 3000 multilayer fancy cakes and incurred the following actual costs for direct material and direct labor:
Purchased 16,500 pounds of ingredients at $1.44 per pound
Used 15,500 pounds of ingredients at $1.44 per pond
Used 1520 hours of direct labor at $22 per hour
The standard costs for production of multilayer fancy cakes are as follows:
Direct Material Standard:
Standard quantity:
Ingredients in finished product 4.85 pound
Allowance for normal waste 0.35 pound
Total standard quantity required per multilayer fancy cakes 5.20 pound
Standard price:
Purchase price per pound of ingredients (net of purchase discounts) $1.3
Transportation cost per pound 0.10
Total standard price per pound of ingredients $1.40
Direct Labor Standard:
Standard quantity:
Direct labor required per multilayer fancy cake 0.5 hours
Standard rate:
Hourly wage rate $16
Fringe benefit (25% of wages) 4
Total standard rate per hour $20
Required - Compute DC Dessert's direct material and direct labor variances for the month of November.