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.)

Please show work and complete the tables.

b. The labor rate and efficiency variances.

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

Qty Rate amount Qty Rate amount Materials            27,000.00                      0.31              8,370.00            73,000.00                      0.30            21,900.00 Labour              5,400.00                      7.10            38,340.00              5,900.00                      7.60            44,840.00 Actual output              4,500.00 Materials reqd(4,500*6)            27,000.00 Labour hrs reqd(4,500*1.2)              5,400.00 DM use= 73,000 -39,250            33,750.00 DMPV = (SP-AP)*AQ Purchased DMPV = (.31-.30) 73,000 DMPV = 730 F DMQV= (SQ-AQ Used)SP DMQV= (27,000 - 33,750).31 DMQV= 2,092.50 U DLRV= (SR-AR)AH DLRV= (7.10 - 7.60)5,900 DLRV= 2,950 U DLEV = (SH-AH)SR DLEV = (5,400 - 5,900)7.10 DLEV = 3,550 U

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