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 $0.32 per micron
Direct labor: 1.2 hours per toy at $6.60 per hour
During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows:
Direct materials: 74,000 microns were purchased at a cost of $0.31 per micron. 33,750 of these microns were still in inventory at the end of the month.
Direct labor: 6,020 direct labor-hours were worked at a cost of $42,742.
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.

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

Step: 3

blur-text-image

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

Principles of Auditing and Other Assurance Services

Authors: Ray Whittington, Kurt Pany

19th edition

978-0077804770, 78025613, 77804775, 978-0078025617

More Books

Students also viewed these Accounting questions