Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted...
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Accounting
Direct Materials and Direct Labor Variances
At the beginning of June, Kimber Toy Company budgeted 14,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:
Direct materials
$19,600
Direct labor
12,600
Total
$32,200
The standard materials price is $0.40 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
$18,300
Actual direct labor
11,800
Total
$30,100
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 12,700 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
$fill in the blank 1
FavorableUnfavorableUnfavorable
Direct labor time variance
$fill in the blank 3
FavorableUnfavorableUnfavorable
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