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

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a...

70.2K

Verified Solution

Question

Accounting

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 $0.32 per micron

Direct labor: 1.2 hours per toy at $7.00 per hour

During July, the company produced 4,800 Maze toys. Production data for the month on the toy follow:

Direct materials: 74,000 microns were purchased at a cost of $0.31 per micron. 32,000 of these microns were still in inventory at the end of the month.

Direct labor: 6,260 direct labor-hours were worked at a cost of $47,576.

Required:

1. Compute the following variances for July: (Indicate the effect 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.

b. The labor rate and efficiency variances.

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