Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $10,200 Direct labor 8,160 Total $18,360 The standard materials price is $0.40 per pound. The standard direct labor rate is $12.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $9,600 Actual direct labor 7,700 Total $17,300 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 15,600 during June.

Direct Materials and Direct Labor Variances At the beginning of June, Bezco Toy Company budgeted 17,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $10,200 Direct labor 8,160 Total $18,360 The standard materials price is $0.40 per pound. The standard direct labor rate is $12.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $9,600 Actual direct labor 7,700 Total $17,300 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 15,600 during June.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter9: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 12E: Direct materials and direct labor variances At the beginning of June, Bezco Toy Company budgeted...

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