Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the
Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $2.00 per micron Direct labour: 0.80 hours per toy at $13.25 per hour Variable overhead: 0.80 hours per toy at $4.25 per hour During July, the company planned to make 4,600 toys, the normal volume, and produced 4,700 Maze toys. Production data for the month on the toy follow: Direct materials: 28,060 microns were purchased for use in production at a cost of $1.90 per micron. 7,500 of these microns were still In inventory at the end of the month. Direct labour: 4,600 direct labour-hours were worked at a cost of $69,000. Variable overhead cost was $20,440, and fixed overhead cost was $52,200. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie., zero variance).) Materials price variance Materials quantity variance
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