Direct labor: 1.5 hours per toy at $6.90 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials: 78,000 microns were purchased at a cost of $0.31 per micron. 29,875 of these microns were still in inventory at the end of the month. Direct labor. 8,650 direct labor-hours were worked at a cost of $63,145. 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. > Answer is complete but not entirely correct. 1a. Material price variance $ 2,370 x U 1a. Material quantity variance $ 14,960 x U 1b. Labor rate variance $ 3,900 F 1b. Labor efficiency variance $ 3,300 U R

Direct labor: 1.5 hours per toy at $6.90 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials: 78,000 microns were purchased at a cost of $0.31 per micron. 29,875 of these microns were still in inventory at the end of the month. Direct labor. 8,650 direct labor-hours were worked at a cost of $63,145. 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. > Answer is complete but not entirely correct. 1a. Material price variance $ 2,370 x U 1a. Material quantity variance $ 14,960 x U 1b. Labor rate variance $ 3,900 F 1b. Labor efficiency variance $ 3,300 U R

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 10E: Standard unit cost and journal entries The normal capacity of Algonquin Adhesives Inc. is 40,000...

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Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.33 per micron Direct labor: 1.3 hours per toy at $7.10 per hour During July, the company produced 5,300 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. 26,625 of these microns were still in inventory at the end of the month. Direct labor. 7,290 direct labor-hours were worked at a cost of $56,133. 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. 1a. Material price variance 1a. Material quantity…