son Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs has established the following standards for the Maze toy: ect materials: 7 microns per toy at $0.30 per micron sect labor: 1.2 hours per toy at $6.80 per hour ring July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: rect materials: 75,000 microns were purchased at a cost of $0.26 per micron. 34,750 of these microns were still in inventory at the d of the month. rect labor 5,920 direct labor-hours were worked at a cost of $43,808. equired: Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, nd "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations, Round inal answer to the nearest whole dollar amount.) The materials price and quantity variances. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance ID. Labor efficiency variance
son Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs has established the following standards for the Maze toy: ect materials: 7 microns per toy at $0.30 per micron sect labor: 1.2 hours per toy at $6.80 per hour ring July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: rect materials: 75,000 microns were purchased at a cost of $0.26 per micron. 34,750 of these microns were still in inventory at the d of the month. rect labor 5,920 direct labor-hours were worked at a cost of $43,808. equired: Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, nd "None" for no effect (l.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations, Round inal answer to the nearest whole dollar amount.) The materials price and quantity variances. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity variance 1b. Labor rate variance ID. Labor efficiency variance
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Dawson Toys, Limited, 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 microns per toy at $0.30 per micron
Direct labor: 1.2 hours per toy at $6.80 per hour
During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows:
Direct materials: 75,000 microns were purchased at a cost of $0.26 per micron. 34,750 of these microns were still in inventory at the
end of the month.
Direct labor: 5,920 direct labor-hours were worked at a cost of $43,808.
Required:
1. Compute the following variances for July (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable,
and "None" for no effect (.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 variance
1b. Labor rate variance
Ib. Labor efficiency variance
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