Use the following standard cost card for 1 gallon of ice cream to answer the questions....

 

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Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at $1.05 per quart • 832 ounces of sugar at $0.075 per ounce • 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances. Use the following standard cost card for 1 gallon of ice cream to answer the questions. Actual direct costs incurred to make 50 gallons of ice cream: • 275 quarts of cream at $1.05 per quart • 832 ounces of sugar at $0.075 per ounce • 165 minutes of labor at $37 per hour All material used was bought during the current period. A. Compute the material and labor variances. B. Comment on the results and possible causes of the variances.

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To determine A Introduction Variance is the difference between the actual performance and the standa... View the full answer