Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control its costs. The following standards have been established for AWESOME. • Direct materials 15 grams per AWESOME. • Standard direct material cost per AWESOME is $10. • Direct labour 1.2 hours per AWESOME. • Standard cost of direct labour is $14.40 per AWESOME. • During May the company produced 9,000 AWESOME units. Production data for May are: • Direct materials: 165,000 grams were purchased at a cost of $104,000; 20,000 grams of this was still in inventory at the end of the month. • Direct labour: 11,400 direct labour hours were worked at a cost of $142,500. Required: (a) Calculate Direct materials price and quantity variances. (b) Calculate Direct labour price and quantity variances.

Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control its costs. The following standards have been established for AWESOME. • Direct materials 15 grams per AWESOME. • Standard direct material cost per AWESOME is $10. • Direct labour 1.2 hours per AWESOME. • Standard cost of direct labour is $14.40 per AWESOME. • During May the company produced 9,000 AWESOME units. Production data for May are: • Direct materials: 165,000 grams were purchased at a cost of $104,000; 20,000 grams of this was still in inventory at the end of the month. • Direct labour: 11,400 direct labour hours were worked at a cost of $142,500. Required: (a) Calculate Direct materials price and quantity variances. (b) Calculate Direct labour price and quantity variances.

Name: Morry Games developed a new play station called AWESOME. Morry Games
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Description: Morry Games developed a new play station called AWESOME. Morry Games has a standard cost system to help control itscosts. The following standards have been established for AWESOME.• Direct materials 15 grams per AWESOME.• Standard direct material co

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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