Leery Manufacturing produces a gameboard called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze: Direct Materials: 6 microns per gameboard at P 0.75 per micron During July, the company produced 3,000 Maze gameboards. Production data for the month on the toy Follow: Direct materials: 25,000 microns were purchased at a cost of P 0.72 per micron. 5,000 of these microns were still in inventory at the end of the month.

Leery Manufacturing produces a gameboard called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze: Direct Materials: 6 microns per gameboard at P 0.75 per micron During July, the company produced 3,000 Maze gameboards. Production data for the month on the toy Follow: Direct materials: 25,000 microns were purchased at a cost of P 0.72 per micron. 5,000 of these microns were still in inventory at the end of the month.

Name: Compute for the variances of the problem using the information given.
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Description: Compute for the variances of the problem using the information given. Answer the numbers only up to two decimal places. Compute for Direct Materials Price VarianceCompute for Direct Materials Spending VarianceCompute for Direct Materials Quantity Va

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter23: Evaluating Variances From Standard Costs

Section: Chapter Questions

Problem 4CMA: JoyT Company manufactures Maxi Dolls for sale in toy stores. In planning for this year, JoyT...

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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard costsystem to help control costs and has established the following standards for the Maze toy:Direct materials: 6 microns per toy at $0.50 per micronDirect labor: 1.3 hours per toy at $8 per hourDuring July, the company produced 3,000 Maze toys. Production data for the month on the toy follow:Direct materials: 25,000 microns were purchased at a cost of $0.48 per micron. 5,000 of these micronswere still in inventory at the end of the month.Direct labor: 4,000 direct labor-hours were worked at a cost of $36,000.Required:1. Compute the following variances for July:a. Direct materials price and quantity variances.b. Direct labor rate and efficiency variances.2. Prepare a brief explanation of the possible causes of each variance
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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established 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 $0.32 per micron Direct labor: 1.2 hours per toy at $6.60 per hour During July, the company produced 5,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 79,000 microns were purchased at a cost of $0.30 per micron. 41,500 of these microns were still in inventory at the end of the month. Direct labor. 6,400 direct labor-hours were worked at a cost of $44,800. 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 answers to the nearest whole dollar amount.) a. The materials price and quantity…