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 $0.32 per micron Direct labor: 1.2 hours per toy
at $6.60 per hour During July, the company produced 4,900 Maze toys. The toy's production data
for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.28
per micron. 33,125 of these microns were still in inventory at the end of the month. Direct labor.
6,380 direct labor-hours were worked at a cost of $45,936. 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..
Dawson Toys, Limited, produces a toy called the Maze. The company has.pdf
1. 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 $0.32 per micron Direct labor: 1.2 hours per toy
at $6.60 per hour During July, the company produced 4,900 Maze toys. The toy's production data
for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.28
per micron. 33,125 of these microns were still in inventory at the end of the month. Direct labor.
6,380 direct labor-hours were worked at a cost of $45,936. 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.
