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Exerclse 1 0 - 8 ( Algo ) Direct Materlals and Direct Labor Varlances [ LO 1 0 - 1 , LO 1 0 -
Exerclse Algo Direct Materlals and Direct Labor Varlances LO LO
Dawson Toys, Limited, produces a toy called the Maze with the following standards:
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 $
Requlred:
Compute the following variances for July:
Note: Indleate the effect of each varlance by selecting F for fovorable, U for unfavorable, and "None" for no effect le zero
varlance Input all amounts as positlve values. Do not round Intermedlate calculations. Round final answer to the nearest whole
dollar amount.
a The materials price and quantity variances.
b The labor rate and efficiency variances.
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