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Maria Bakes and Sells Cakes for Special Occasions

Question 10

Multiple Choice

Maria bakes and sells cakes for special occasions. Each cake requires 0.5 kilograms of flour. Flour costs £1.20 per kilogram. During May, Maria expected to bake 500 cakes. However, due to additional demand, she baked 600 cakes and her total flour cost for the month was £420 for 360 kilograms. What was Maria's direct material total variance for the month of May?


A) £12 Favourable
B) £60 Unfavourable
C) £72 Unfavourable
D) £72 Favourable

Correct Answer:

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