Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy:
Direct materials: microns per toy at $ per micron
Direct labor: hours per toy at $ per hour
During July, the company produced Maze toys. The toy's production data for the month are as follows:
Direct materials: microns were purchased at a cost of $ per micron. of these microns were still in inventory at the end of the month.
Direct labor. direct laborhours were worked at a cost of $
Required:
Compute the following variances for July: Indicate the effect of each variance by selecting for favorable, for unfavorable, and "None" for no effect ie zero variance Input all amounts as positive values. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount.
a The materials price and quantity variances.
b The labor rate and efficiency variances.
tablea Material price variance,,a Material quantity variance,,b Labor rate variance,,b Labor efficiency variance,,
