QYESTION 3 ***

3. Calculate the Material QUANTITY variance using actual production numbers given above and label whether it Is FAVOURABLE

or UNFAVOURABLE.

The Top Company uses a standard costing system and produces custom made plastic toys using the following inputs - and actual I data: Input Standard Input per Toy Standard Cost of Input ACTUAL Cost to Produce 270,000 Toys ACTUAL Quantity Used to produce 270,000 Toys Plastic 380g $0.04/gram $4,044,000 99,600,000 grams Direct Labour 0.25 hours $11.00/hour Required: 1. What is the standard cost of one toy? 2. Calculate the Material PRICE variance using actual production numbers given above and label it FAVOURABLE or UNFAVOURABLE 3. Calculate the Material QUANTITY variance using actual production numbers given above and label whether it is FAVOURABLE or UNFAVOURABLE