Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costsand has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $0.33 per micronDirect labor: 1.1 hours per toy at $7.40 per hourDuring July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows:Direct materials: 73,000 microns were purchased at a cost of $0.30 per micron. 32,500 of these microns were still in inventory at theend of the month.Direct labor. 6,540 direct labor-hours were worked at a cost of $50,358.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. Roundfinal answer to the nearest whole dollar amount.)a. The materials price and quantity variances.b. The labor rate and efficiency variances.1a. Material price variance1a. Material quantity variance1b. Labor rate variance1b. Labor efficiency variance$2,190 FUUU

The materials price variances are the variance between standard and actual cost of actual quantity…

Answered: Dawson Toys, Limited, produces a toy…

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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Cinturon Corporation produces high-quality leather belts. The company's plant in Boise uses a standard costing system and has set the following standards for materials and labor: Leather (3 strips @ $5.00) Direct labor (0.25 hr. @ $8.00) Total prime cost $15.00 2.00 $17.00 During the first month of the year, the Boise plant produced 39,000 belts. Actual leather purchased was 130,000 strips at $3.40 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 34,000 hours at $14.50 per hour. Required: 1. Compute the costs of leather and direct labor that should be incurred for the production of 39,000 leather belts. Materials $ 397,800 X Labor $ 493,000 X 2. Compute the total budget variances for materials and labor. Total Budget Variance Materials -397,785 X Labor -492,998 X Favorable Unfavorable 3. Conceptual Connection: Would you consider these variances material with a need for investigation? Yes
Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.35 per micron Direct labor: 1.5 hours per toy at $6.80 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.32 per micron. 31,375 of these microns were still in inventory at the end of the month. Direct labor. 8,050 direct labor-hours were worked at a cost of $58,765. Required: 1. Compute the following variances for July: Note: 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 variances. b. The labor rate and efficiency variances.
Erie Company manufactures a mobile fitness device called the Jogging Mate. The company uses standards to control its costs. The labor standards that have been set for one Jogging Mate are as follows: Standard Hours Standard Rate per Hour Standard Cost 24 minutes $ 6.00 $ 2.40 During August, 8,380 hours of direct labor time were needed to make 19,500 units of the Jogging Mate. The direct labor cost totaled $48,604 for the month. Required: 4. What is the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.50 per direct labor-hour. During August, the company incurred $40,224 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month.
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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 $7.20 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials. 77,000 microns were purchased at a cost of $0.28 per micron. 29,750 of these microns were still in inventory at the end of the month. Direct labor. 8,160 direct labor-hours were worked at a cost of $63,648. 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…
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PPP, Inc. manufactures teddy bears and dolls. Currently, PPP makes 2,000 teddy bears each month. Each teddy bear uses $2.00 in direct materials and $0.50 in direct labor. PPP uses two activities in manufacturing the teddy bears: Sewing and Processing. The cost associated with Sewing is $15,00o a month, allocated on the basis of direct labor hours. The cost associated with Processing is $10,00o a month, allocated on the basis of batches. Teddy bears use 1/2 of the direct labor hours, and 35% of total batches. What is the total manufacturing cost for one teddy bear? Select one: a. $7.00 b. $2.50 C. $4.50 d. $8.00
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