Dawson Toys, Limited, 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: 8 microns per toy at $0.31 per micron
Direct labor: 1.3 hours per toy at $7.20 per hour
During July, the company produced 4,500 Maze toys. The toy’s production data for the month are as follows:
Direct materials: 76,000 microns were purchased at a cost of $0.27 per micron. 31,000 of these microns were still in inventory at the end of the month.
Direct labor: 6,350 direct labor-hours were worked at a cost of $48,895.
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.
It’s that simple.Pay only when you are satisfied.
Get Personalized Homework Help
Improve Your Grades Today
How It Works
1-Send us your Assignment requirements, attach and deadline for submission.
2-You will get a confirmation from us with a price quote.Pay us and be relax.
3-Your Completed task will be e mailed to you before agreed time.
Submit Your Assignment/Essay/Discussion/Term Paper/Final Exam or CaseStudy Detail
Available 24/7!
Send your academic problems,
Get instant Help only at Writerscampus!