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Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545 F

Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545 F

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545✓✔ F
Transcribed Image Text:Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545✓✔ F
Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545✔ F
Transcribed Image Text:Dawson Toys, Ltd. produces a toy called the Maze. The company has recently established a standard costing system to help control costs with the following standards for the Maze toy: Direct materials: 8 microns per toy at $3.50 per micron Direct labour: 0.90 hours per toy at $15.00 per hour Variable overhead: 0.90 hours per toy at $6.00 per hour During July, the company planned to make 5,300 toys, the normal volume, and produced 5,400 Maze toys. Production data for the month on the toy follow: Direct materials: 32,330 microns were purchased for use in production at a cost of $3.40 per micron. 11,000 of these microns were still in inventory at the end of the month. Direct labour: 5,300 direct labour-hours were worked at a cost of $90,100. Variable overhead cost was $33,740, and fixed overhead cost was $60,600. The budget variance for July was $0. Required: 1-a. Compute the direct materials price and quantity variances for July. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) Materials price variance Materials quantity variance Answer is not complete. F $ 76,545✔ F
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