Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard c and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $6.80 per hour During July, the company produced 5,300 Maze toys. The toy's production data for the month are as foll Direct materials: 78,000 microns were purchased at a cost of $0.30 per micron. 31,625 of these microns end of the month. Direct labor. 8,020 direct labor-hours were worked at a cost of $57,744. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for fa and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round inter 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 $ 3,120 $ 4,080
Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard c and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $6.80 per hour During July, the company produced 5,300 Maze toys. The toy's production data for the month are as foll Direct materials: 78,000 microns were purchased at a cost of $0.30 per micron. 31,625 of these microns end of the month. Direct labor. 8,020 direct labor-hours were worked at a cost of $57,744. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for fa and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round inter 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 $ 3,120 $ 4,080
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter9: Standard Costing: A Functional-based Control Approach
Section: Chapter Questions
Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...
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