Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct...
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Accounting
Bluebird Bakery produces bread sticks and uses a standard cost accounting system. The primary direct material is flour. Here are data regarding Bluebird's production activity for the month of May:
Standard quantity of flour per batch - 100 pounds
Standard price per pound of flour - $1.20 per pound
Actual price paid for flour - $1.35 per pound
Actual quantity of flour purchased and used - 5,000 pounds
Spending variance for flour - $5,700 favorable
What is the direct material quantity variance for flour?
A. $7,650 unfavorable B. $5250 unfavorable C. $4950 favorable D. $6,450 favorable
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