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dusya [7]
3 years ago
14

Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c

osts and has established the following standards for the Maze toy:
Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hour
During 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 $1.48 per micron. 5,000 of these microns were still in inventory at the end of the month.
Direct labor: 4,000 direct labor-hours were worked at a cost of $88,000.
Required: 1. Compute the following variances for July:
a. The materials price and quantity variances.
b. The labor rate and efficiency variances.
2. Prepare a brief explanation of the possible causes of each variance.
Business
1 answer:
guapka [62]3 years ago
5 0

Answer:

a) 500F and 3,000U

the company use a cheaper material thus, favorable price variance.

But this material had lower quality thus, negative quantity variance

b) 4,000U   2,100U

There was overtime thus, making labor rate higher and productivity as the shift are longer, decrease.

It could also be a combination between wrong directives from the supervisor or defective equipment

Explanation:

DIRECT MATERIALS VARIANCES

(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance

std cost         $ 1.50

actual cost      $ 1.48

quantity 25,000 (amount purchased)

difference  $0.02

price variance  $500.00

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity         18000 (3,000 toys produced x 6 per toy)

actual quantity 20000 (25,000 - 5,000 ending inventory)

std cost                    $1.50

difference      -2000.00

quantity variance  $(3,000.00)

DIRECT LABOR VARIANCES

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate          $21.00

actual rate  $22.00  (88,000 labor cost / 4,000 direct labor hours)

actual hours 4,000

difference  $(1.00)

rate variance  $(4,000.00)

(standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance

std  hours 3900.00 (3,000 toys x 1.3 hours per toy)

actual hours 4000.00

std rate            $21.00

difference   -100.00

efficiency variance  $(2,100.00)

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This a type of unemployment that always exists and are relatively stable over time, including seasonal, structural, and friction
Darya [45]

<u>Answer: </u>Natural unemployment

<u>Explanation:</u>

Natural unemployment always exists even in a healthy economy this is because the people keep changing their jobs and they even leave the current job in search of the new ones. Natural unemployment also includes other types of unemployment such as seasonal, structural and frictional unemployment types.

Also some people might possess skills that are not necessary in the labor market. The natural unemployment is still in the economy even when there is technological advancement, industry expansion. New labor forces enter into market every year and people search jobs for better opportunities.

6 0
3 years ago
Read 2 more answers
240 individuals are recruited in this trial, and the new treatment is effective on 60 of them. What is the p-value associated wi
larisa [96]

Answer:

Explanation:

Experiments were performed for 240 people, 60 people test positive.

Step 1: we calculate the sample proportion; p= 60/240= 0.25.

Step 2: calculate the standard error for the sample, which is the square root of sample proportion,p = p(1-p)/n, n=100

0.25(1-0.25)/100

= 0.04.

Step 3: calculate the test statistics; assuming the hypothesis test percentage is 25%

Then, we say 0.25-1=0.75

-0.75/0.04

= -1.875.

In particular, the sample results are -1.875 standard error.

Probability of Z is less than -1.875.

Look up it value in the Z table

3 0
3 years ago
Wainwright Corporation owns and operates a wholesale warehouse.
KATRIN_1 [288]

Answer:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

Explanation:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

8 0
3 years ago
On July 1, Raney Corporation purchases 690 shares of its $4 par value common stock for the treasury at a cash price of $9 per sh
-BARSIC- [3]

Answer:

Date      Particular                                       Dr.        Cr.

Jul-1       Treasury stock                          $6,210

             Cash                                                         $6,210

Sep-1     Cash                                          $4,840

             Treasury stock                                         $3,960

             Paid-in capital - Treasury stock              $880

Explanation:

Treasury stocks are the company's own shares which is repurchased by the company. It is recorded in treasury shares account which is an contra equity account. I can be reissued or cancelled by the company.

Purchase of Treasury Stock

Treasury Stock = 690 x $9 = $6,210

Sales of Treasury Stock

Cash Receipt = 440 x $11 = $3,300

Treasury Stock = 440 x $9 = $3,960

Paid-in capital - Treasury stock = 440 x $2 = $880

5 0
3 years ago
An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400
Klio2033 [76]

Answer:

$4,713.425

Explanation:

The computation of amount of net pay for the employee for the month of January is shown below:-

Deductions = (Gross earning × Social security tax rate) + (Gross earning × Medicare tax rate) + Federal income taxes + Health insurance + Contribution of retirement plan

=  ($5,550 × 6.2%) + ($5,550 × 1.45%) + $184 + $152 + $76

= $344.1 + $80.475 + $184 + $152 + $76

= $836.575

Net pay = Gross earning - Deductions

= $5,550 -  $836.575

= $4,713.425

Therefore for computing the net pay we simply applied the above formula.

3 0
3 years ago
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