2:46 ezto.mheducation.com Dawson Toys Ltd. produces a toy called the Maze. The c

Question

2:46 ezto.mheducation.com Dawson Toys Ltd. produces a toy called the Maze. The company has recendly established a standad cost system to heip contol cstS and has established the following standards for the Maze toy Direct materials:7 microns per toy at $0.33 Direct labor: 1.1 hours per toy at S6.70 per During July, the company produced 4,700 Maze toys Production da for the month on the toy follow Direct matenials 76,000 microns were punchased at a cost of $0.30 per micron 34.875 ofthese micronswero st?? in nventory at end Direct labor: 5.570 direct labor-hours were worked at a coatf Compute the following variances for July Ondicate the effect of unfavorable, and "None" for no efflect (ie, zero varianeel. De nearest whole dolar The materials price and quantity variances The labor rate and efficiency variances

Explanation / Answer

1a) Material price varianc (Actual price - standard price)* Actual qty purchased (.30 - .33)*76000 2280 F Material Quantity variance (Actual qty used - standard qty allowed)*standard price (41125   - 4700*7)*.33 2714 U 1b) labor rate variance (Actual rate - standard rate)*Actual hours (38,990        - 6.70*5570) 1671 U labor efficiency variance (Actual hours - standard hours)*standard rate (5570             - 4700*1.1)*6.7 2680 U

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

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