y 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 $0.31 per micron Direct labor 11 hours per toy at $750 per hour Dunng July, the company produced 5,400 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 28 per micron 38,500 of these microns were still in inventory at the end of the month Direct labor. 6.440 direct labor-hours were worked at a cost of $50,876 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 (l.e., zero varience). 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 variances b. The labor rate and efficiency variances ta Matenal price variance 1a Material quantity variance 16 Labor rate varlance 16 Labor efficency varance
y 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 $0.31 per micron Direct labor 11 hours per toy at $750 per hour Dunng July, the company produced 5,400 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 28 per micron 38,500 of these microns were still in inventory at the end of the month Direct labor. 6.440 direct labor-hours were worked at a cost of $50,876 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 (l.e., zero varience). 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 variances b. The labor rate and efficiency variances ta Matenal price variance 1a Material quantity variance 16 Labor rate varlance 16 Labor efficency varance
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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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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