At the beginning of June, Geppetto's Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials Direct labor Total $56,400 The standard materials price is $0.50 per pound. The standard direct labor rate is $12.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $42,000 14,400 Actual direct labor $37,700 12,900 Total $50,600 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. Geppetto's Toy Company actually produced 20,900 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 labor time variance Direct materials quantity variance $fill in the blank 1 $fill in the blank 3 Favoral Favoral
At the beginning of June, Geppetto's Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials Direct labor Total $56,400 The standard materials price is $0.50 per pound. The standard direct labor rate is $12.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $42,000 14,400 Actual direct labor $37,700 12,900 Total $50,600 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. Geppetto's Toy Company actually produced 20,900 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 labor time variance Direct materials quantity variance $fill in the blank 1 $fill in the blank 3 Favoral Favoral
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:At the beginning of June, Geppetto's Toy Company budgeted
24,000 toy action figures to be manufactured in June at
standard direct materials and direct labor costs as follows:
Direct materials
Direct labor
Actual direct materials
Total
$56,400
The standard materials price is $0.50 per pound. The standard
direct labor rate is $12.00 per hour. At the end of June, the
actual direct materials and direct labor costs were as follows:
Actual direct labor
$42,000
Total
14,400
$37,700
$50,600
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. Geppetto's Toy Company
actually produced 20,900 units during June.
12,900
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 labor time variance
Direct materials quantity variance
$fill in the blank 1
$fill in the blank 3
Favoral
Favoral
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