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Question - Bravo Baking uses standard costing to analyze its performance. The data below is provided for your use in determining Bravo's variances.
Standard Cost per unit
Cost/Unit
Amount/Unit
Standard Cost
Material Cost (Ingredients) (.5 lbs)
2.29
.5 lbs
$4.85
Direct labor (.25 hrs * $9/hr)
2.25
.25 hrs
$9.00
Overhead
0.57
Total
5.11
During the month, Bravo sold 9,000 loaves of bread and used 4,650 pounds of ingredients. Also during the month, Bravo purchased 5,000 pounds of ingredients at a cost of $22,500. Employees worked a total of 2200 hours and actual labor costs were $19,998.
Required: Compute the material price and quantity variance.
Material Price Variance =
Material Quantity Variance =
Labor Rate Variance =
Labor Efficiency Variance =
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