FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
Bartleby Related Questions Icon

Related questions

Question

Please do not give solution in image format thanku 

Dawson Toys, Limited, 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: 7 microns per toy at $0.34 per micron
Direct labor: 14 hours per toy at $7.20 per hour
During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows
Direct materials: 75,000 microns were purchased at a cost of $0.33 per micron. 33,875 of these microns were still in inventory at the
end of the month
Direct labor: 7180 direct labor-hours were worked at a cost of $55,286
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.e., 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
1a Material quantity variance
1b Labor rate variance
1b Labor efficiency variance
expand button
Transcribed Image Text:Dawson Toys, Limited, 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: 7 microns per toy at $0.34 per micron Direct labor: 14 hours per toy at $7.20 per hour During July, the company produced 4,700 Maze toys. The toy's production data for the month are as follows Direct materials: 75,000 microns were purchased at a cost of $0.33 per micron. 33,875 of these microns were still in inventory at the end of the month Direct labor: 7180 direct labor-hours were worked at a cost of $55,286 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.e., 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 1a Material quantity variance 1b Labor rate variance 1b Labor efficiency variance
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
FINANCIAL ACCOUNTING
Accounting
ISBN:9781259964947
Author:Libby
Publisher:MCG
Text book image
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Text book image
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Text book image
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education