Question -

The company's standard cost for their award winning bumblepuppies is as follows: Each bumplepuppy is budgeted to use 4 square feet of material. The material is budgeted to cost $2 per square foot. On the labor side their workers are budgeted to assemble 2 bumblepuppies per hour (apprs. ½ hour each); workers are budgeted at $12 per hour.

During May Hippo Dippo made 500 bumblepuppies. They bought and used 1,800 square feet of material, at a cost of $3,960. They incurred 275 hours of labor to make the 500 bumblepuppies, paying out $3,575.

Answer the following (clearly, showing all your steps working toward the answers):

1. What is the standard (expected) cost of making the 500 bumblepuppies?

2. Please calculate and clearly show the material and labor variances.