Question

Help Save & Exit Submit Check my work Direct materials: 8 microns per toy at $0.32 per micron Direct labor: 1.2 hours per toy at $7.10 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials 76,000 microns were purchased at a cost of $0.30 per micron. 26,000 otf these micróns were still in inventory at the end of the month Direct labor. 6,400 direct labor-hours were worked at a cost of $48,000. 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.., 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. 1a. Material price variance Material quantity variance 1b. Labor rate variance Labor efficiency variance

Answer 1

1a)	Material price varianc
	(Actual price - standard price)* Actual qty purchased
	(.30-.32)*76000
	1520	F
	Material Quantity variance
	(Actual qty used - standard qty allowed)*standard price
	(50000-5000*8)*.32
	3200	U
1b)	labor rate variance
	(Actual rate - standard rate)*Actual hours
	(48000-6400*7.10)
	2560	U
	labor efficiency variance
	(Actual hours - standard hours)*standard rate
	(6400 -5000*1.2)*7.1
	2840	U