Aunt Mollys Old Fashioned Cookies Cost item Qty per pound of cookies 10 5 1 Mts 1 2 8 St unit costs

Direct material Cookie mix Milk Chocolate Almonds Direct manf labor Mixing Baking Variable overhead

0.02 0.15 0.50 14.40 18.00 32.40

Perfomance report April 2007 Particulars Units Revenues Direct materials Direct manf labor Usage report Cost item Direct materials Cookie mix Milk Chocolate Almonds Qty 4,650,000.00 2,660,000.00 480000.00 Actual cost 93,000.00 532,000.00 240,000.00 Actual 450000 3,555,000.00 865,000.00 348,000.00 Budget 400000 3,200,000.00 580,000.00 336,000.00 Variance 50000 355,000.00 285,000.00 12,000.00

Favorable Favorable Unfavorable Unfavorable

Direct manf labor Mixing Baking 450,000.00 800,000.00 108,000.00 240,000.00

Required 1. Sales price variance 2. Direct material price variance 3. Direct material efficiency variance 4. Direct labor efficiency variance

1. Sales price variance Saled price variance Actual quantity sold (Actual selling price - Budgeted selling price) Actual quantity sold Actual selling price Budgeted selling price Sales price variance 450000 7.90 8.00 (45,000.00) Unfavorable

2. Direct material price variance Actual quantity purchased (Actual price - Budgeted price) Cost item Actual quty Purchased * Actual price 93,000.00 532,000.00 240,000.00 Actual quty purchased* budgeted price 93,000.00 399,000.00 240,000.00 Unfavorable/ (favorable variance)

Cookie milk Milk Chocolate Almond

133,000.00 -

3. Direct material efficiency variance Budgeted rate (Actual qty used - Budgeted qty used) Cost item Budgeted rate * actual quty used 93,000.00 399,000.00 240,000.00 Budgeted rate * budgeted qty used 90,000.00 337,500.00 225,000.00 Unfavorable/ (favorable variance) 3,000.00 61,500.00 15,000.00

Cookie mix Milk Chocolate Almond

4. Direct labor efficiency variance Budgeted labor rate (Actual labor hrs - Budgeted labor hrs) Cost item Budgeted labor rate * Actual labor hrs 108,000.00 240,000.00 Budgeted labor rate * budgeted labor rate 108,000.00 270,000.00 Unfavorable/ (favorable variance)

Mixing Baking

(30,000.00)

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