Question
The Top Company uses a standard costing system and produces custom made plastic toys using the following inputs and actual data: Input Standard Input per
The Top Company uses a standard costing system and produces custom made plastic toys using the following inputs and actual data:
| Input | Standard Input per Toy | Standard Cost of Input |
| ACTUAL Cost to Produce 175,000 Toys | ACTUAL Quantity Used to Produce 175,000 Toys |
| Plastic | 175g | $0.06/gram |
| $1,680,000 | 32,000,000 grams |
| Direct Labour | 0.12 hours | $10.00/hour |
|
|
|
- What is the standard cost of one toy?
- Calculate the Material PRICE variance using actual production numbers given above and label whether it is FAVOURABLE or UNFAVOURABLE.
- Calculate the Material QUANTITY variance using actual production numbers given above and label whether it is FAVOURABLE or UNFAVOURABLE.
- Should only unfavourable variances be investigated WHY or WHY NOT?
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Measuring Business Interruption Losses And Other Commercial Damages An Economic Approach
Authors: Patrick A. Gaughan
3rd Edition
1119647916, 9781119647911
