Purchase Solution

Cost analysis variances for the Bakery

Not what you're looking for?

Ask Custom Question

Analysis of the cost variances for the Bakery.

Standard Quantities and Costs per 50 loaf batch:
Materials: 60 lbs at $2.00 per lb
Labor: 3 hours at $16.00 per hour

Actual for June:
Materials Exp: $2,310
Labor Exp: $1,200
Batches Produced: 20 (Budget was also for 20 batches)
Quantity of Materials Used: 1100 lbs
Number of Labor Hours Worked: 80

Prepare Variance Analysis:
1. Calculate (in Excel) the following and indicate if the variance was favorable or unfavorable:
A. Materials spending variance
B. Materials usage variance
C. Labor spending variance
D. Labor usage variance

2. Draw a variance picture for the Materials Variances

Purchase this Solution

Solution Summary

In an Excel format, the response to the problem is clearly shown together with good explanation and a bar chart.

Solution Preview

See the attached file.

Item Loaf Batch
Units Produced 50
Standards per unit:
Material quantity 60 lbs
Material price $2 per lbs
Labor Hours 3 hrs
Labor rate $16 per hours
Actual Consumption:
Material Expenses $2,310
Labor Expenses $1,200
Batches Produced 20.00
Quantity of Material Used 1,100.00 lbs
No of labor haours ...

Purchase this Solution


Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.