Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy: Direct materials: 7 diodes per toy at $0.32 per diode Direct labor: 1.5 hours per toy at $6.90 per hour During August, the company produced 5,500 Brainbuster toys. Production data on the toy for August follow: Direct materials: 79,000 diodes were purchased at a cost of $0.29 per diode. 30,875 of these diodes were still in inventory at the end of the month. Direct labor: 8,850 direct labor-hours were worked at a cost of $65,490. Required: 1. Compute the following variances for August: (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Leave no cells blank - be certain to enter "O" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance).) a. Direct materials quantity and price variances. Material quantity variance Material price variance (Click to select) (Click to select)v b. Direct labor efficiency and rate variances. Labor efficiency variance Labor rate variance 24 (Click to select) (Click to select) v 24
Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost system to help control costs and has established the following standards for the Brainbuster toy: Direct materials: 7 diodes per toy at $0.32 per diode Direct labor: 1.5 hours per toy at $6.90 per hour During August, the company produced 5,500 Brainbuster toys. Production data on the toy for August follow: Direct materials: 79,000 diodes were purchased at a cost of $0.29 per diode. 30,875 of these diodes were still in inventory at the end of the month. Direct labor: 8,850 direct labor-hours were worked at a cost of $65,490. Required: 1. Compute the following variances for August: (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. Leave no cells blank - be certain to enter "O" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance).) a. Direct materials quantity and price variances. Material quantity variance Material price variance (Click to select) (Click to select)v b. Direct labor efficiency and rate variances. Labor efficiency variance Labor rate variance 24 (Click to select) (Click to select) v 24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Topper Toys has developed a new toy called the Brainbuster. The company has a
standard cost system to help control costs and has established the following standards
for the Brainbuster toy:
Direct materials:7 diodes per toy at $0.32 per diode
Direct labor: 1.5 hours per toy at $6.90 per hour
During August, the company produced 5,500 Brainbuster toys. Production data on the
toy for August follow:
Direct materials: 79,000 diodes were purchased at a cost of $0.29 per diode. 30,875 of
these diodes were still in inventory at the end of the month.
Direct labor: 8,850 direct labor-hours were worked at a cost of $65,490.
Required:
1. Compute the following variances for August: (Input all amounts as positive values.
Do not round your per unit rates, round other intermediate calculations and your
final answer to nearest whole dollar. Leave no cells blank - be certain to enter "O"
wherever required. Indicate the effect of each variance by selecting "F" for
favorable, "U" for unfavorable, and "None" for no effect (I.e., zero variance).)
a. Direct materials quantity and price variances.
Material quantity variance
Material price variance
(Click to select)
(Click to select) v
b. Direct labor efficiency and rate variances.
Labor efficiency variance
Labor rate variance
(Click to select)
(Click to select) v
%%24
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