Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $53,900 Direct labor 10,560 Total $64,460 The standard materials price is $0.70 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 $48,200 Actual direct labor 9,400 Total $57,600 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. Kimber Toy Company actually produced 19,100 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number

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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Direct Materials and Direct Labor Variances

At the beginning of June, Kimber Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials $53,900
Direct labor 10,560
Total $64,460

The standard materials price is $0.70 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 $48,200
Actual direct labor 9,400
Total $57,600

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. Kimber Toy Company actually produced 19,100 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct Materials and Direct Labor Variances
At the beginning of June, Kimber Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as
follows:
Direct materials
$53,900
Direct labor
10,560
Total
$64,460
The standard materials price is $0.70 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
$48,200
Actual direct labor
9,400
Total
$57,600
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.
Kimber Toy Company actually produced 19,100 units during June.
Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable
variance as a negative number using a minus sign and an unfavorable variance as a positive number.
Direct materials quantity variance
$
Direct labor time variance
Transcribed Image Text:Direct Materials and Direct Labor Variances At the beginning of June, Kimber Toy Company budgeted 22,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $53,900 Direct labor 10,560 Total $64,460 The standard materials price is $0.70 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 $48,200 Actual direct labor 9,400 Total $57,600 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. Kimber Toy Company actually produced 19,100 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance $ Direct labor time variance
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