Answered step by step
Verified Expert Solution
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: microns per toy at $ per micron
Direct labor: hours per toy at $ per hour
During July, the company produced Maze toys. The toy's production data for the month are as follows:
Direct materials: microns were purchased at a cost of $ per micron. of these microns were still in inventory at the
end of the month.
Direct labor. direct laborhours were worked at a cost of $
Required:
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 ie 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.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: microns per toy at $ per micron
Direct labor: hours per toy at $ per hour
During July, the company produced Maze toys. The toy's production data for the month are as follows:
Direct materials: microns were purchased at a cost of $ per micron. of these microns were still in inventory at the end of the month.
Direct labor: direct laborhours were worked at a cost of $
Required:
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 ie 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started