Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.70 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,347.5 cups of flour to make 4,800 biscuits. The standard cost per cup of flour is $0.53. A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance? Round your answers to two decimals. Enter all amounts as positive numbers. Direct materials price variance $ fill in the blank 1 Direct materials quantity variance $ fill in the blank 3 Total direct materials cost variance $ fill in the blank 5 B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals. $ fill in the blank 7
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Dog Bone Bakery, which bakes dog treats, makes a special biscuit for dogs. Each biscuit uses 0.70 cup of pure semolina flour. They buy 4,000 cups of flour at $0.55 per cup. They use 3,347.5 cups of flour to make 4,800 biscuits. The
A. What are the direct materials price variance, the direct materials quantity variances, and the total direct materials cost variance? Round your answers to two decimals. Enter all amounts as positive numbers.
| Direct materials price variance | $ fill in the blank 1 | |
| Direct materials quantity variance | $ fill in the blank 3 | |
| Total direct materials cost variance | $ fill in the blank 5 |
B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals.
$ fill in the blank 7
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