Dawson Toys, Limted, 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 8 microns per toy at $0 30 per micron Direct labor 1 3 hours per toy at $7 10 per hour During July, the company produced 4,800 Maze toys The toy's production data for the month are as follows Direct materials 78,000 microns were purchased at a cost of $0 27 per micron 30,000 of these microns were still in inventory at the end of the month Direct labor 6,640 direct labor hours were worked at a cost of $49,800 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 (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 1a Material price variance 1a Material quantity variance 1b Labor rate variance 1b Labor efficiency variance

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Dawson Toys, Limted, 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  8 microns per toy at $0 30 per micron Direct labor  1 3 hours per toy at $7 10 per hour During July, the company produced 4,800 Maze toys  The toy's production data for the month are as follows  Direct materials  78,000 microns were purchased at a cost of $0 27 per micron  30,000 of these microns were still in inventory at the end of the month  Direct labor  6,640 direct labor hours were worked at a cost of $49,800  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 (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  1a  Material price variance 1a  Material quantity variance 1b  Labor rate variance 1b  Labor efficiency variance

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Financial Accounting An Introduction to Concepts, Methods and Uses

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Financial Accounting An Introduction to Concepts, Methods and Uses

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