Question

Dawson Toys, Ltd., 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 6 microns per toy at $0.34 per micron Direct labor. 14 hours per toy at $710 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials 78,000 microns were purchased at a cost of $0.32 per micron 43,500 of these microns were still in inventory at the end of the month. Direct Jabor 7.040 direct labor-hours were worked at a cost of $54,208. Required: 1. Compute the following variances for July (Indicate the effect of each variande 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 answers to the nearest whole dollar amount.) a. The materials price and quantity variances. b. The labor rate and efficiency variances 1a. Material price variance Material quantity variance 1b Labor rate variance Labor efficiency variance

Answer 1

Given data o. 34 pe miuren SP maleeial SU Ap 0.22 per míuron sooo micon AU pachaye Au uyed 7000- 42 5Do 34500 miuons AU uthedxsp-Ap) Material price verionce 78Doo 0.3- o.32 1560 (F) malerin quaril veaonce sp(su nUUed -34 600x6]-tuso 2346 U) Asp- A) Labou at Voionce 7очо х +0 +54209 10- 1oy0 [१ +० - १११) 4224 Habau fin vasianc SRCSH AH) 6uyo-7o40 4260 460()