INTRODUCTION - Oregon State University

D) 330 cups of flour were used to make all of the apple pies. The actual price paid per cup of flour was $0.35. Calculate the quantity and price variances for flour. Provide a possible explanation for the quantity variance. Price variance = AQ x (AP – SP) = 330 cups x ($0.35 ( $0.40) = $16.50 favorable. Quantity variance = SP x (AQ – SQ) ................
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