Betty’s Bakery has the following standard cost sheet for one unit of its most popular cake:
During the month of May, the company made 600 cakes and incurred the following actual costs:
Direct materials purchased and used (900 pounds), $1,170
Direct labor (660 hours), $7,590
Required:
1. Calculate the direct materials price variance.
2. Calculate the direct materials quantity variance.
3. Calculate the direct materials spending variance.
4. Calculate the direct labor rate variance.
5. Calculate the direct labor efficiency variance.
6. Calculate the direct labor spending variance.
