Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 8 microns per toy at $0.30 per micron Direct labor: 1.1 hours per toy at $7.00 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials. 80,000 microns were purchased at a cost of $0.28 per micron. 26,000 of these microns were still in inventory at the end of the month. Direct labor: 6,240 direct labor-hours were worked at a cost of $47,424. 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 variance 1b. Labor rate variance 1b. Labor efficiency variance
Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 8 microns per toy at $0.30 per micron Direct labor: 1.1 hours per toy at $7.00 per hour During July, the company produced 5,400 Maze toys. The toy's production data for the month are as follows: Direct materials. 80,000 microns were purchased at a cost of $0.28 per micron. 26,000 of these microns were still in inventory at the end of the month. Direct labor: 6,240 direct labor-hours were worked at a cost of $47,424. 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 variance 1b. Labor rate variance 1b. Labor efficiency variance
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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