Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 06 Aug 2017 My Price 13.00

cs Cake Company

Many times in business, budgets play a huge role in planning for how the business will operate in the future. SaraAc€?cs Cake Company has been looking at implementing a flexible budget. As a consultant at SaraAc€?cs Cake Company, you need to explain to management the importance of flexible budgets. You need to use the information from the budget last month and compare this to the actual results (all listed in the table below) to find the direct material price variance, direct material quantity variance, direct labor rate variance, direct labor efficiency variance, variable overhead spending variance, and variable overhead efficiency variance. Make sure to analyze each variance to see if it is favorable or unfavorable. (Please do not copy and paste the previous answer, it is not correct)

Budgeted No. of Cakes Sold:

2500

Actual No. of Cakes Sold:

2700

Cake Production per Labor Hour:

2

Sales Price per Cake:

$15
   

Budgeted Cost Per Cake:

  

Flour

$1.25

Yeast

$0.05

Sugar

$0.25

Eggs

$0.75

Butter

$0.15

Frosting

$0.95

Production Payroll

$4.50
   

Actual Cost Per Cake:

  

Flour

$1.05

Yeast

$0.05

Sugar

$0.25

Eggs

$0.55

Butter

$0.15

Frosting

$0.75

Production Payroll

$4.50
   

Budgeted Cost of Labor per Hour:

$9.00

Budgeted Hours of Production:

1250 hours
   

Actual Cost of Labor per Hour

$9.25

Actual Hours of Production:

1400 hours
   

Budgeted Variable Overhead Rate Per Labor Dollar:

$0.25

Actual Variable Overhead

$2,500

 

Answers

Maurice Tutor
(5)
Status NEW Posted 06 Aug 2017 11:08 PM My Price 13.00

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