A. Compute in details the Direct Materials Variances - Prices & Quantity. Show the solution for each. B. Compute in details the Direct Labour Variances - Rate & Efficiency. Show the solution for each. Direct materials: Direct labour: Variable mfg overhead: Fixed mfg overhead: During January, the company produced 6,000 Beadazzler toys. The fixed overhead expense budget for January was $48,360 with 8,060 direct labour-hours as the denominator level of activity. Production data for the month on the toys follow: Direct materials: 6 microns per toy @ $1.00 per micron. 1.3 hours per toy @ $8 per hour 1.3 hours per toy @ $4 per hour 1.3 hours per toy @ $6 per hour Direct labour: Variable manufacturing overhead: Fixed manufacturing overhead: 50000 microns were purchased and used in production at a cost of $0.96 per micron 8000 direct labour hours were worked at a cost of $72000 Actual cost in January was $34,000. Actual cost in January was $50,000.

A. Compute in details the Direct Materials Variances - Prices & Quantity. Show the solution for each. B. Compute in details the Direct Labour Variances - Rate & Efficiency. Show the solution for each. Direct materials: Direct labour: Variable mfg overhead: Fixed mfg overhead: During January, the company produced 6,000 Beadazzler toys. The fixed overhead expense budget for January was $48,360 with 8,060 direct labour-hours as the denominator level of activity. Production data for the month on the toys follow: Direct materials: 6 microns per toy @ $1.00 per micron. 1.3 hours per toy @ $8 per hour 1.3 hours per toy @ $4 per hour 1.3 hours per toy @ $6 per hour Direct labour: Variable manufacturing overhead: Fixed manufacturing overhead: 50000 microns were purchased and used in production at a cost of $0.96 per micron 8000 direct labour hours were worked at a cost of $72000 Actual cost in January was $34,000. Actual cost in January was $50,000.

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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