Reference no: EM132529711
Cookie Business
Actual Cost of Direct Materials: $225,000
Standard Cost of Direct Materials: $224,800
Actual Materials Used: 30
Standard Materials Used: 31
Actual Direct Labor Rate: $15.50
Standard Labor Rate: $15.00
Actual Hours Worked: 45
Standard Hours Worked: 40
Amount Favorable/ Unfavorable
Calculate Materials Variances:
Materials Price Variance: $-7,452 Unfavorable
Materials Quantity Variance: $7,252 Favorable
Calculate Labor Variances:
Labor Rate Variance: $-22.50 Unfavorable
Labor Efficiency Variance: $-75 Unfavorable
Question 1: Discuss your observations about the variances and ways to plan to improve any of the variances.