Topper Toys has developed a new toy called the Brainbuster. The company has a st

Question

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: 1.2 hours per toy at $7.10 per hour
During August, the company produced 4,500 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. 39,625 of these diodes were still in inventory at the end of the month. Direct labor: 6,000 direct labor-hours were worked at a cost of $45,600.
Compute the following variances for August Direct materials price and quantity variances.
Material price variance $ (Click to select)FUNone Material quantity variance $ (Click to select)FNoneU
b. Direct labor rate and efficiency variances.
Labor rate variance $ (Click to select)FUNone Labor efficiency variance $ (Click to select)FUNone 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 79,000 at .29 vs stnd of .32, a favorable Price variance of .03 x 79,000 units = 2370 DM Quantity - Stnd Quantity for 4500 toys @ 7 each is 31500. Total usage was 39375=(79,000 - 39625). Unfavorable usage of 7875 x stnd cost of .33 = 2598.75

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