Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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: 7 microns per toy at $0.34 per micron

Direct labor: 1.4 hours per toy at $6.70 per hour

During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows:

Direct materials: 71,000 microns were purchased at a cost of $0.31 per micron. 29,000 of these microns were still in inventory at the end of the month.

Direct labor: 7,120 direct labor-hours were worked at a cost of $50,552.

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 answers to the nearest whole dollar amount.)

a. The materials price and quantity variances.

b. The labor rate and efficiency variances.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

HRD Score Card 2500 Based On HRD Audit

Authors: T V Rao

1st Edition

8178298368, 978-8178298368

More Books

Students also viewed these Accounting questions

Question

Describe your ideal working day.

Answered: 1 week ago