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Bravo Baking - Material and Labor Variances - 23 Aug, 2012

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

 

 

Standard

 

Standard

 

Cost/Unit

per unit

Cost

Material Cost (ingredients)

4.58

0.5

2.29

Direct Labor

9

0.25

2.25

Overhead

 

 

0.57

Total

 

 

5.11

 

 

During the month Bravo sold 9000 loaves of bread and used 4,650 pounds of ingredients.

Also during the month, Bravo purchased 5000 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

Compute the labor rate and efficiency variance



Category : Cost Accounting

Search Keywords :
Bravo , Baking , Performance , Material , Labor , Variances , Price , Quantity , Rate , Efficiency 


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Answer  - 23 Aug, 2012
Please see the excel attachment....


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