Required: Compute the materials price and quantity variances for the month. EXERCISE 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2] Dawson Toys, Ltd., produces a tov called the Maze. The company has recently established a stan. dard cost system to help control costs and has established the following standards for the Maze tow: Direct materials: 6 microns per toy at $0.50 per micron Direct labor: 1.3 hours per toy at $8 per hour During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow: Direct materials: 25,000 microns were purchased at a cost of $0.48 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 $36,000. Standard Costs and Variance Required: 1. Compute the following variances for July: The materials price and quantity variances. The labor rate and efficiency variances. a. b. 2 Prepare a brief explanation of the possible causes of each varjance, le with McGraw-Hill's Connect Accoum
Required: Compute the materials price and quantity variances for the month. EXERCISE 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2] Dawson Toys, Ltd., produces a tov called the Maze. The company has recently established a stan. dard cost system to help control costs and has established the following standards for the Maze tow: Direct materials: 6 microns per toy at $0.50 per micron Direct labor: 1.3 hours per toy at $8 per hour During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow: Direct materials: 25,000 microns were purchased at a cost of $0.48 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 $36,000. Standard Costs and Variance Required: 1. Compute the following variances for July: The materials price and quantity variances. The labor rate and efficiency variances. a. b. 2 Prepare a brief explanation of the possible causes of each varjance, le with McGraw-Hill's Connect Accoum
Chapter1: Financial Statements And Business Decisions
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![Required:
Compute the materials price and quantity variances for the month.
EXERCISE 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2]
Dawson Toys, Ltd., produces a tov called the Maze. The company has recently established a stan.
dard cost system to help control costs and has established the following standards for the Maze tow:
Direct materials: 6 microns per toy at $0.50 per micron
Direct labor: 1.3 hours per toy at $8 per hour
During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:
Direct materials: 25,000 microns were purchased at a cost of $0.48 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 $36,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F85e39e9b-3b6a-4fb6-8406-b63a567ff03b%2F9eb69ebf-d1b3-4912-b3b9-8a2a25065725%2F0n8odiu.jpeg&w=3840&q=75)
Transcribed Image Text:Required:
Compute the materials price and quantity variances for the month.
EXERCISE 10-8 Direct Materials and Direct Labor Variances [LO10-1, L010-2]
Dawson Toys, Ltd., produces a tov called the Maze. The company has recently established a stan.
dard cost system to help control costs and has established the following standards for the Maze tow:
Direct materials: 6 microns per toy at $0.50 per micron
Direct labor: 1.3 hours per toy at $8 per hour
During July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:
Direct materials: 25,000 microns were purchased at a cost of $0.48 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 $36,000.
Transcribed Image Text:Standard Costs and Variance
Required:
1. Compute the following variances for July:
The materials price and quantity variances.
The labor rate and efficiency variances.
a.
b.
2 Prepare a brief explanation of the possible causes of each varjance,
le with McGraw-Hill's Connect Accoum
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