**Dawson Toys, Ltd. Cost Analysis for Maze Toy****Standard Costs Established:**- **Direct Materials:** 6 microns per toy at $1.50 per micron- **Direct Labor:** 1.3 hours per toy at $21 per hour**July Production Data:**- **Production Output:** 3,000 Maze toys**Direct Materials:**- Total purchased: 25,000 microns at $1.48 per micron- Inventory remaining at month-end: 5,000 microns**Direct Labor:**- Total hours worked: 4,000 direct labor-hours- Total labor cost: $88,000**Required Analysis:**1. Compute variances for July: - **Materials Price and Quantity Variances** - **Labor Rate and Efficiency Variances****Instructions:**- Indicate variances as "F" for favorable, "U" for unfavorable, or "None" for no effect. - Input all amounts as positive values.**Variance Table:**| Variance Type | Value | Effect ||-----------------------------------|-------|--------|| **1a.** Material Price Variance | | || Material Quantity Variance | | || **1b.** Labor Rate Variance | | || Labor Efficiency Variance | | |

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Dawson Toys, Ltd., 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: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hour During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month. Direct labor. 4,000 direct labor-hours were worked at a cost of $88,000. 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.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance

Dawson Toys, Ltd., 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: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hour During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 25,000 microns were purchased at a cost of $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month. Direct labor. 4,000 direct labor-hours were worked at a cost of $88,000. 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.) a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance

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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