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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
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: 6 microns per toy at $0.32 per micron Direct labor: 1.5 hours per toy at $7.20 per hour During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows: Direct materials: 73,000 microns were purchased at a cost of $0.28 per micron. 37,750 of these microns were still in inventory at the end of the month. Direct labor: 7,350 direct labor-hours were worked at a
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