Case 3: UP NY Diner

The June budget, based on standard costs:

Budgeted Production	2,600 pasties
Direct materials	Dough$286 (0.25 Lbs. @ $0.44/Lb. x 2,600) Filling/spices$936 (0.75 Lbs. @ $0.48/Lb. x 2,600) Grouper fish--$5,200 (1/16 Lb. @ $32.00/Lb. x 2,600)
Direct Labor	$2,340 (0.05 DLH@ $18.00/Hr. x 2,600)
VOH	$1,875 (VOH allocated at $15.00 per DLH x 125 DLH)

At the end of the month, Jed's accountant sends him the following financial results (along with a bill for services):

Actual June performance of the central pastie kitchen:

Actual Production	2,500 pasties
Direct materials	Dough$315.00 (0.30 Lbs. @ $0.42/Lb. x 2,500) Filling/spices$1,050.00 (0.70 Lbs. @ $0.60/Lb. x 2,500) Grouper fish--$5,460.00 (.91 oz. @ $2.40/oz. x 2,500)
Direct Labor	$2,337.50 (0.055 DLH@ $17.00/Hr. x 2,500)
VOH	$1,893.00

UP NY Diner
Kitchen Performance Report
For the Month of June
	Actual	Budget	Variance
Direct Materials	Dough--$315.00 Filling/spices-- $1,050.00 Grouper fish--$5,460.00	Dough--$286.00 Filling/spices-- $936.00 Grouper fish--$5,200.00	$ 29.00 U $ 114.00 U $ 260.00 U
Direct labor	$2,337.50	$2,340.00	$ 2.50 F
Variable OH	$1,893.00	$1,875.00	$ 18.00 U
Total	$11,055.50	$10,637.00	$ 418.50 U

1. Identify a more useful variance analysis, and include it with your financial analysis. Your analysis should include the total budget variance as well as its price/rate/spending and quantity/efficiency component. The following format might be helpful:

Account	Actual cost	Flexible budget	Total Budget Variance	Price/Rate Variance	Qty/Efficiency Variance
Dough	$315.00
Filling/spices	$1,050.00
Grouper fish	$5,460.00
Direct labor	$2,337.50
Variable OH	$1,893.00
Total	$11,055.50