C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard 53.50 per inch $20 per hour Direct Materials 3 hours Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.25 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 825 hours at an average rate of $22 per hour. Compute the labor price variance for September. Multiple Choice $1,710U $1,650U $1,710F $1,650F

C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard 60 inches Price Standard 53.50 per inch $20 per hour Direct Materials 3 hours Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.25 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 825 hours at an average rate of $22 per hour. Compute the labor price variance for September. Multiple Choice $1,710U $1,650U $1,710F $1,650F

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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Dawson Toys, Limited, produces a toy called the Maze. The company has recently created 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: 1.4 hours per toy at $7.10 per hour During July, the company produced 4,900 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.29 per micron. 36,125 of these microns were still in inventory at the end of the month. Direct labor. 7,360 direct labor-hours were worked at a cost of $55,936. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.) a. The materials price and quantity…
C-Cubed uses standards to control its costs. The direct materials and direct labor standards for one Fit-Right-Bike, which is made out of chromoly steel, are given below: Quantity Standard Price Standard $3.25 per inch Direct Materials 60 inches Direct Labor During the month of September, C-Cubed planned on making 300 bikes, but it actually produced 275 bikes. C-Cubed incurred the following costs: A. 19,000 inches of chromoly steel were purchased at a cost of $3.50 per inch. C-Cubed used only 17,500 inches of chromoly steel in making the 275 bikes. B. Direct laborers worked 855 hours at an average rate of $22 per hour. 3 hours $20 per hour Compute the materials quantity variance for September. Multiple Choice $3,500U $3.500F $3.250F $3.250U
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