The ANSWER i have filled are correct valkk 25.00 points Dawson Toys, Ltd., produ

Question

The ANSWER i have filled are correct

valkk 25.00 points 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 Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.5 hours per toy at $7.10 per hour During July, the company produced 4,500 Maze toys. Production data for the month on the toy follow Direct materials: 73,000 microns were purchased at a cost of $0.32 per micron. 33,625 of these microns were still in inventory at the end of the month. Direct labor: 7,150 direct labor-hours were worked at a cost of $55,055 Required 1. Compute the following variances for July: (Do not round intermediate calculations. Round final answer to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) a. The materials price and quantity variances. Material price variance1,460 F Material quantity variance b. The labor rate and efficiency variances. Labor rate variance Labor efficiency variance

Explanation / Answer

Direct materials price variance (Actual price - standard price)* Actual qty purchased (.32-.34)*73000 1460 F Direct materials Quantity variance (actual qty used - standard qty allowed)*standard price (39,375 - 31,500)*.34 2678 U labor rate variance (Actual rate - standard rate)*actual hours (7.7 - 7.10)*7150 4,290 U labor rate efficiecny variance (actual hrs - standars hrs allowed)*standard rate (7,150        - 4500*1.5)*7.10 2,840 U

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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