Homer?s D?ohnuts makes tasty chocolate-glazed doughnuts. The main ingredient in doughnuts is flour, and, for the most recent month, Homer budgeted to purchase and use 625 pounds of flour at $0.25 per pound. Budgeted output was 2,500 chocolate-glazed doughnuts (i.e., Homer budgets to make four doughnuts per pound of flour). Homer actually purchased and used 720 pounds of flour at $0.22 per pound; actual output for the month was 3,240 chocolate-glazed doughnuts.
What were Homer?s flour price and quantity variances for the most recent month?
This question was answered on: Jul 11, 2017
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