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.