Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgetE materials and direct labor costs as follows: Direct materials $19,000 Direct labor 14,630 Total $33,630

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Chapter1: Financial Statements And Business Decisions
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Direct Materials and Direct Labor Variances
At the beginning of June, Bezco Toy Company budgeted 19,000 toy action figures to be manufactured in June at standard direct
materials and direct labor costs as follows:
Direct materials
$19,000
Direct labor
14,630
Total
$33,630
The standard materials price is $0.50 per pound. The standard direct labor rate is $11.00 per hour. At the end of June, the actual
direct materials and direct labor costs were as follows:
Actual direct materials
$17,200
Actual direct labor
13,200
Total
$30,400
There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct
materials inventory balances in June. Bezco Toy Company actually produced 16,700 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal
places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a
minus sign and an unfavorable variance as a positive number.
Direct materials quantity variance
Unfavorable
Direct labor time variance
Unfavorable
Transcribed Image Text:Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 19,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $19,000 Direct labor 14,630 Total $33,630 The standard materials price is $0.50 per pound. The standard direct labor rate is $11.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $17,200 Actual direct labor 13,200 Total $30,400 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 16,700 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance Unfavorable Direct labor time variance Unfavorable
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