Nixon's Diner Bakes Pies in Large Batches

question 233

Essay

Nixon's Diner bakes pies in large batches. One batch of pies has the following standard costs and amounts:
Nixon's Diner baked 425 batches of pies in the most recent month. Actual costs and usage levels were as follows:
Required:
a. Calculate the material price variance.
b. Calculate the material quantity variance.
c. Calculate the labor rate variance.
d. Calculate the labor efficiency variance.

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Definitions:

Accounts Receivable

Debts owed by clients to a firm for goods or services provided but not yet compensated for.

Sales Revenue

The overall amount of money a business earns through the sale of products or services, prior to deducting any costs.

Cash Account

An account that records all transactions involving cash inflows and outflows.

Bank Statement

A document provided by a bank, summarizing the transactions that occurred in an account over a period.