Dawson Toys, Ltd, produces a toy called the Maze. The company has recently created a standard cost system to heip control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $6.70 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials. 77,000 microns were purchased at a cost of $0.30 per micron. 31,000 of these microns were still in inventory at the end of the month. Direct labor. 6,940 direct labor-hours were worked at a cost of $49,968. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, Ior no effest (Le., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round
Dawson Toys, Ltd, produces a toy called the Maze. The company has recently created a standard cost system to heip control costs and has established the following standards for the Maze toy: Direct materials: 8 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $6.70 per hour During July, the company produced 4,600 Maze toys. The toy's production data for the month are as follows: Direct materials. 77,000 microns were purchased at a cost of $0.30 per micron. 31,000 of these microns were still in inventory at the end of the month. Direct labor. 6,940 direct labor-hours were worked at a cost of $49,968. Required: 1. Compute the following variances for July: (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, Ior no effest (Le., zero variance). Input all amounts as positive values. Do not round intermediate calculations. Round
Chapter8: Standard Costs And Variances
Section: Chapter Questions
Problem 4PA: April Industries employs a standard costing system in the manufacturing of its sole product, a park...
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