Dawson Toys, Ltd., produces a toy called the Maze. The company has recently esta
ID: 2477386 • Letter: D
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 Variance Quantity Variance Standard Cost per unit (Actual usage per unit - Standard usage per unit) Std cost per unit $0.34 Actual usage per unit 47,250 Standard usage per unit (5400*7) 37,800 Material Quantity Variance (3,213.00) Adverse Price Variance Actual Quantity used *(Actual Price - Standard Price) Actual Quantity 5,400 Actual Price 0.32 Standard Price 0.34 Material Price Variance 108.00 Favourable Total Material Variance (3,105.00) (Adverse) Labour Variance Labour Rate Variance Actual hours *(Actual rate - standard rate) Actual hours 7,520.00 Actual rate (54144/7520) 7.20 Standard rate 6.90 Labour Rate Variance (2,256.00) Adverse Labour Efficiency Variance Standard Rate *(Actual Hours - Standard Hours) Standard Rate 6.90 Actual Hours 7,520.00 Standard Hours (5400*1.3)) 7,020.00 Labour Efficiency Variance (3,450.00) Adverse Total Labour Variance (5,706.00) Adverse
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