Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 21,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials Direct labor Total $29,400 15,750 $45,150 The standard materials price is $0.70 per pound. The standard direct labor rate is $15.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials Actual direct labor Total $26,400 14,100 $40,500 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Kimber Toy Company actually produced 18,300 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Direct labor time variance -3,000 X Favorable -1,650 X Favorable Direct Labor Variances Greeson Clothes Company produced 21,000 units during June of the current year. The Cutting Department used 4,000 direct labor hours at an actual rate of $13.90 per hour. The Sewing Department used 6,600 direct labor hours at an actual rate of $13.60 per hour. Assume that there were no work in process inventories in either department at the beginning or end of the month. The standard labor rate is $13.80. The standard labor time for the Cutting and Sewing departments is 0.20 hour and 0.30 hour per unit, respectively. a. Determine the direct labor rate, direct labor time, and total direct labor cost variance for the Cutting Department and Sewing Department. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct labor rate variance Cutting Department Favorable Unfavorable Sewing Department Unfavorable Favorable Favorable rate and a(n) time variance, resulting in a rate variance but has a time Direct labor time variance Total direct labor cost variance Unfavorable b. The two departments have opposite results. The Cutting Department has a(n) total variance, resulting in a total cost variance. In contrast, the Sewing Department has a(n) cost variance. Direct Labor Variances The following data relate to labor cost for production of 6,900 cellular telephones: Actual: 4,650 hrs. at $13.60 Standard: 4,580 hrs. at $13.90 a. Determine the direct labor rate variance, direct labor time variance, and total direct labor cost variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Rate variance Time variance Total direct labor cost variance $ 1,395 X Favorable $ 952 X Unfavorable 422 Favorable b. The employees may have been less-experienced workers who were paid less than more-experienced workers or poorly trained, thereby resulting in a lower labor rate than planned. The lower level of experience or training may have resulted in less efficient performance. Thus, the actual time required was more than standard. Standard Cost Journal Entries Dvorak Company produced 6,300 units that require 5 standard pounds per unit at $6 standard price per pound. The company actually used 32,100 pounds in production. Journalize the entry to record the standard direct materials used in production. For a compound transaction, if an amount box does not require an entry, leave it blank. Work in Process Direct Materials Quantity Variance Materials 189,000 -3,600 X 192,600 Feedback Check My Work A debit balance in the Direct Materials Quantity Variance account represents an unfavorable variance. Likewise, a credit balance in the Direct Materials Quantity Variance account represents a favorable variance