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x C Solved -> coezto.mheducation.com/hm.tpx?--0.6616722913751 971_1511844542089 aductor de Google 37.50 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: 6 microns per toy at $0.32 per micron Direct labor: 1.1 hours per toy at $6.90 per hour During July, the company produced 4,600 Maze toys. Production data for the month on the toy follow Direct materials: 78,000 microns were purchased at a cost of $0.31 per micron. 43,500 of these microns were still in inventory at the end of the month Direct labor: 5,560 direct labor-hours were worked at a cost of $41,144 1. Compute the following variances for July Indicate the offect 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) a. The materials price and quantity variances. Material price vanance Material quantity variance b. The labor rate and efficleney variances Labor rate variance Labor efficiency variance F6 esc F3 F5 Fl F2

Explanation / Answer

Material Variance Standared Actual Qty rate Amount Qty rate Amount DM          27,600           1.92          52,992                  34,500                     1.86          64,170 =4600*6 =0.32*6 =78000-43500 =0.31*6 Total Cost Variance 52992-64170                (11,178) Unfavourable Price Variance=AQ*(SR-AR) 34500*(1.92-1.86)                     2,070 Favourable Quantity Variance=SR*(SQ-AQ) 1.92*(27600-34500)                (13,248) Unfavourable Labor Variance Standared Actual Hours rate Amount Hours rate Amount DL            5,060           6.90          34,914                     5,560                     7.40          41,144 =4600*1.1           6.90                     5,560 =41144/5560 Total Cost Variance 34914-41144                  (6,230) Unfavourable Rate Variance=AH*(SR-AR) 5560*(6.90-7.40)                  (2,780) Favourable Effecency Variance=SR*(SH-AH) 6.90*(5060-5560)                  (3,450) Unfavourable

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