At the beginning of June, Bezco Toy Company budgeted 21,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $25,200 Direct labor 8,400 Total $33,600 The standard materials price is $0.60 per pound. The standard direct labor rate is $10.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $22,600 Actual direct labor 7,500 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. Bezco Toy Company actually produced 18,300 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, 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 $ Direct labor time variance $
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
At the beginning of June, Bezco Toy Company budgeted 21,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:
| Direct materials | $25,200 |
| Direct labor | 8,400 |
| Total | $33,600 |
The standard materials price is $0.60 per pound. The standard direct labor rate is $10.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:
| Actual direct materials | $22,600 |
| Actual direct labor | 7,500 |
| 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. Bezco Toy Company actually produced 18,300 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, 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 | $ | |
| Direct labor time variance | $ |
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