C 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 $0.34 per micron Direct labor: 1.5 hours per toy at $7.40 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials. 71,000 microns were purchased at a cost of $0.31 per micron. 22,875 of these microns were still in inventory at the end of the month. Direct labor. 8,850 direct labor-hours were worked at a cost of $69,915. 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.) 5 a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance 1b. Labor efficiency variance
C 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 $0.34 per micron Direct labor: 1.5 hours per toy at $7.40 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials. 71,000 microns were purchased at a cost of $0.31 per micron. 22,875 of these microns were still in inventory at the end of the month. Direct labor. 8,850 direct labor-hours were worked at a cost of $69,915. 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.) 5 a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance 1b. Labor efficiency variance
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 3EB: Use the following information to create a standard cost card for production of one photography drone...
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![**Dawson Toys, Limited: Standard Cost System for the Maze Toy**
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 $0.34 per micron
- **Direct Labor**: 1.5 hours per toy at $7.40 per hour
During July, the company produced 5,500 Maze toys. The toy’s production data for the month are as follows:
- **Direct Materials**: 71,000 microns were purchased at a cost of $0.31 per micron. 22,875 of these microns were still in inventory at the end of the month.
- **Direct Labor**: 8,450 direct labor-hours were worked at a cost of $69,915.
### 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 the final answer to the nearest whole dollar amount.)*
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
| **1a. Material Price Variance** | | |
| ------------------------------------- | - | - |
| **1a. Material Quantity Variance** | | |
| **1b. Labor Rate Variance** | | |
| **1b. Labor Efficiency Variance** | | |
The table is provided for filling in the computed variances alongside their indications of favorability.
This instructional content is designed to aid in understanding how standard cost systems are utilized in manufacturing settings to manage expenditures and ensure efficiency in production processes.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F492efe9f-0a9a-45cd-99ee-2fd493a23754%2F7ac5396c-bca6-4835-8f3e-95e4927409fc%2F6x0q1ke_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Dawson Toys, Limited: Standard Cost System for the Maze Toy**
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 $0.34 per micron
- **Direct Labor**: 1.5 hours per toy at $7.40 per hour
During July, the company produced 5,500 Maze toys. The toy’s production data for the month are as follows:
- **Direct Materials**: 71,000 microns were purchased at a cost of $0.31 per micron. 22,875 of these microns were still in inventory at the end of the month.
- **Direct Labor**: 8,450 direct labor-hours were worked at a cost of $69,915.
### 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 the final answer to the nearest whole dollar amount.)*
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
| **1a. Material Price Variance** | | |
| ------------------------------------- | - | - |
| **1a. Material Quantity Variance** | | |
| **1b. Labor Rate Variance** | | |
| **1b. Labor Efficiency Variance** | | |
The table is provided for filling in the computed variances alongside their indications of favorability.
This instructional content is designed to aid in understanding how standard cost systems are utilized in manufacturing settings to manage expenditures and ensure efficiency in production processes.
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