Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.32 per micron Direct labor: 1.1 hours per toy at $7.30 per hour During July, the company produced 5,100 Maze toys. Production data for the month on the toy follow Direct materials: 75,000 microns were purchased at a cost of $0.30 per micron. 30,375 of these microns were still in inventory at the end of the month. Direct labor: 6,210 direct labor-hours were worked at a cost of $47,196. Required: 1. Compute the following variances for July: (Do not round intermediate calculations. Round final answer to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) a. The materials price and quantity variances. Material price variance Material quantity variance $ (1,500)F b. The labor rate and efficiency variances. Labor rate variance Labor efficiency variance
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
