Business, 08.03.2021 19:30, queenkimm26
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 $0.33 per micron
Direct labor: 1.2 hours per toy at $7.10 per hour
During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows:
Direct materials: 72,000 microns were purchased at a cost of $0.30 per micron. 33,750 of these microns were still in inventory at the end of the month.
Direct labor: 6,420 direct labor-hours were worked at a cost of $50,076.
Required:
Compute the following variance for july:
a The materials price and quantity variances
b. The labor rate and efficiency variances
Answers: 2
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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost...
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