Dawson Toys, Ltd., produces a toy called the Maze. The company has recently esta

Question

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:

Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Round final answer to the nearest whole dollar.)

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:

Explanation / Answer

material Price Variance (AQ*AP)-(AQ*SP) (39000*0.31)-(39000*0.34) -1170 Favorable material quantity variance (AQ-SQ)*SP (39000-31200)*0.34 2652 Unfavorable Labor rate variance (AH*AR)-(AH*SR) 43452-(6120*6.50) 3672 Unfavorable Labor Efficiency Variance (AH-SH)*SR (6120-5720)*6.50 2600 Unfavorable Standard Cost Material 6 $                    0.34 $            2.04 Labor 1.1 $                    6.50 $            7.15 Actual Units produced 5200 76000 0.31 Material 37000 Actual Quantity 39000 0.31 Standard Quantity 31200 (5200*6) Labor 6120 $ 43,452.00 Standard Time 5720 (5200*1.1)

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