Question

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 4,100 cups of flour at $0.55 per cup. They use 3,312.5 cups of flour to make 4,750 biscuits. The standard cost per cup of flour is $0.54.

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	$	Unfavorable
Direct materials quantity variance	$	Favorable
Total direct materials cost variance	$	Unfavorable

B. What is the standard cost per biscuit for the semolina flour? Round your answer to four decimals.

$

Answer 1

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 Material Price Variance = (Actual Price - Standard Price) x Actual quantity purchased

Direct Material Price Variance = ($0.55 - $0.54) x 4,100 cups = $41 U

Direct Material Quantity Variance = (Actual Quantity Used - Standard Quantity Allowed ) x Standard Price

Direct Material Quantity Variance = (3,312.5 - 4,750 x 0.70) x $0.54 = $6.75 F

Total Direct Material Variance =Direct Material Price Variance + Direct Material Quantity Variance = $34.25 U

B standard cost per biscuit for the semolina flour?

Standard cost = Standard rate x Stadard quantity =  $0.54 x 0.70 = $0.378