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: 7 mlcrons per toy at $0.34 per micron Direct labor. 1.4 hours per toy at $7.40 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials. 78,000 microns were purchased at a cost of $0.33 per micron. 37,750 of these microns were still in Inventory at the end of the month. Direct labor. 6,840 direct labor-hours were worked at a cost of $53,352. Requlred: 1. Compute the following variances for July: (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. Do not round Intermedlate calculations. Round final answer to the nearest whole dollar amount.) a. The materlals price and quantity varlances. b. The labor rate and efficlency varlances.
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: 7 mlcrons per toy at $0.34 per micron Direct labor. 1.4 hours per toy at $7.40 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials. 78,000 microns were purchased at a cost of $0.33 per micron. 37,750 of these microns were still in Inventory at the end of the month. Direct labor. 6,840 direct labor-hours were worked at a cost of $53,352. Requlred: 1. Compute the following variances for July: (Indlcate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero varlance). Input all amounts as positive values. Do not round Intermedlate calculations. Round final answer to the nearest whole dollar amount.) a. The materlals price and quantity varlances. b. The labor rate and efficlency varlances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I have a few questions from the last chapter that still don't understand can i get help.
Transcribed Image Text:Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs
and has establlshed the following standards for the Maze toy:
Direct materlals: 7 mlcrons per toy at $0.34 per micron
Direct labor: 1.4 hours per toy at $7.40 per hour
During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows:
Direct materlals. 78,000 microns were purchased at a cost of $0.33 per micron. 37,750 of these microns were still in Inventory at the
end of the month.
Direct labor. 6,840 direct labor-hours were worked at a cost of $53,352.
Requlred:
1. Compute the following varlances for July: (Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable,
and "None" for no effect (L.e., zero varlance). Input all amounts as positive values. Do not round Intermedlate calculations. Round
final answer to the nearest whole dollar amount.)
a. The materlals price and quantity varlances.
b. The labor rate and efficlency varlances.
Material price variance
1a.
Material quantity
variance
1b
Labor rate variance
Labor efficiency variance
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