Dawson Toys, Limted, produces a toy called the Maze. The company
has recently created a standard cost system to help control costs
and has established the following standards for the Maze toy:
Direct materials: 7 microns per toy at $0.31 per micron
Direct labor: 1.3 hours per toy at $7.00 per hour
During July, the company produced 4,800 Maze toys. The toy's
production data for the month are as follows:
Direct materials: 78,000 microns were purchased at a
cost of $0.28 per micron. 36,000 of these microns were still in
inventory at the end of the month.
Direct labor: 6,840 direct labor-hours were worked at a
cost of $51,984.
Required:
1. Compute the following variances for
July: (Indicate the effect of each variance by
selecting "F" for favorable, "U" for unfavorable, and "None" for no
effect (i.e., zero variance). Input all amounts as positive values.
Do not round intermediate calculations. Round final answer to the
nearest whole dollar amount.)
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
1A material Quantity Variance
- Ch 10 4 Dawson Toys Limted Produces A Toy Called The Maze The Company Has Recently Created A Standard Cost System To 1 (9.66 KiB) Viewed 17 times