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Problem - Biscayne Inc. manufactures cheesecakes. For May 2020, it budgeted to purchase and use 12,300 pounds of cream cheese at $2.50 per pound. During May 2020 the company purchased, and used, 13,230 pounds of cream cheese for $30,429. Biscayne planned to produced 4,100 cheesecakes, but it ended up producing 4,200 cheesecakes. Show your calculations.
a. Compute the cream cheese material variance.
b. Compute the cream cheese material efficiency variance.
c. Compute the cream cheese material price variance.
d. Analyze and comment on your findings above.
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