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Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.31 per micron Direct labor: 1.5 hours per toy at $7.10 per hour During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.29 per micron. 34,000 of these microns were still in end of the month. Direct labor. 7,700 direct labor-hours were worked at a cost of $59,290. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calc final answers 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 S 1,520 F U CICE U

Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.31 per micron Direct labor: 1.5 hours per toy at $7.10 per hour During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.29 per micron. 34,000 of these microns were still in end of the month. Direct labor. 7,700 direct labor-hours were worked at a cost of $59,290. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calc final answers 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 S 1,520 F U CICE U

FINANCIAL ACCOUNTING
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 and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.31 per micron Direct labor: 1.5 hours per toy at $7.10 per hour During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.29 per micron. 34,000 of these microns were still in end of the month. Direct labor. 7700 direct labor-hours were worked at a cost of $59,290. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calc final answers 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 S 1,520 F U LANGS U
Transcribed Image Text:Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.31 per micron Direct labor: 1.5 hours per toy at $7.10 per hour During July, the company produced 4,800 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.29 per micron. 34,000 of these microns were still in end of the month. Direct labor. 7700 direct labor-hours were worked at a cost of $59,290. Required: 1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calc final answers 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 S 1,520 F U LANGS U
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