Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. dawson toys, limited, produces a toy called the ma

Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct...

60.1K

Verified Solution

Question

Accounting

Dawson Toys, Limited, produces a toy called the Maze with the following standards:
Direct materials: 7 microns per toy at $0.35 per micron
Direct labor: 1.1 hours per toy at $7.10 per hour
During July, the company produced 5,200 Maze toys. The toy's production data for the month are as follows:
Direct materials: 76,000 microns were purchased at a cost of $0.34 per micron. 30,500 of these microns were still in inventory at the
end of the month.
Direct labor: 6,020 direct labor-hours were worked at a cost of $46,956.
Required:
Compute the following variances for July:
Note: Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., 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.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students