Question
A. At the beginning of June, Bezco Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct
A. At the beginning of June, Bezco Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $41,650 Direct labor 10,200 Total $51,850 The standard materials price is $0.70 per pound. The standard direct labor rate is $15.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:
Actual direct materials $37,300
Actual direct labor 9,100
Total $46,400
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 14,800 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct materials quantity variance:
Direct labor time variance:
B. Glacier Bicycle Company manufactures commuter bicycles from recycled materials. The following data for October of the current year are available:
Quantity of direct labor used | 450 hrs. |
Actual rate for direct labor | $13.30 per hr. |
Bicycles completed in October | 210 bicycles |
Standard direct labor per bicycle | 2 hrs. |
Standard rate for direct labor | $13.60 per hr. |
Determine for October the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct Labor Rate Variance:
Direct Labor Time Variance:
Total Direct Labor Cost Variance:
How much direct labor should be debited to Work in Process?
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