ezto mhed 8. 100 points Dawson Toys, Ltd, produces a toy called the Maze. The co

Question

ezto mhed 8. 100 points Dawson Toys, Ltd, produces a toy called the Maze. The company has recently established 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 $0.31 per miron During July, the company produced 4,900 Maze toys. Production data for the month on the toy follow Direct materials: 76,000 microns were purchased at a cost of $0.28 por micron. 33,125 of these microns were still in inventory at the end of the month. Direct labor: 6,380 direct labor-hours were worked at a cost of $46,574 1. Compute the following variances for July: (Do not round intermediate calculations. Round final answer to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (Le., zero variance)) a. The materials price and quanitity variances Material price variance Material quantity variance b. The labor rate and efficiency varianoes Labor rate variance Labor efficiency variance MacBook Air

Explanation / Answer

Material: Std qty allowed for actual ouput (4900*7); 34300 microns Std price per micron: $ 0.31 per micron Actual Qty purchased: 76000 microns Actual Qty consumed: 76000-33125 = 42,875 microns Actual Price per micron: $ 0.28 per micron Material price variancec: Actual Qty purchased (Std price-Actual price) 76000 ( 0.31-0.28) = $2280 F Material Qty varaince= Std Price (Std qty-Actual Qty consumed) 0.31 ( 34300-42875) = $2658.25 U Labour: Std labour hours allowed (4900*1.20): 5880 hours Std rate per hour: $ 6.80 per hour Actual labour hours: 6380 hours Actual labour rate per hour: (46574/6380): $ 7.30 per hour Labour rate variance = Actual Hours worked(Std rate-Actual rate) 6380 (6.80-7.30) = $3190 U Labour Efficiency Variance = Std rate (Std hours-Actual hours) 6.80 (5880 -6380 ) = 3400 U

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.