Compute the following variances for August: (Input all amounts as positive value

Question

Compute the following variances for August: (Input all amounts as positive values. Do not round intermediate calculations. Leave no cells blank - be certain to enter "0" 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). Omit the "$" sign in your response.)

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:

Explanation / Answer

DM Price -
Purchased 70,000 at .28 vs stnd of .30, a favorable Price variance
of .02 x 70,000 units = 1400

DM Quantity -
Stnd Quantity for 5,000 toys @ each is 40,000.
Total usage was 50000 (70,000 - 20000).
Unfavorable usage of 10000 x stnd cost of .3 = 3000

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