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ella [17]
2 years ago
15

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 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 $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.
Business
1 answer:
svlad2 [7]2 years ago
5 0

Answer:

1. a. The materials price and quantity variances

Material price variance: Standard cost per micron is $1.50 and actual cost per micron is $1.48. So, price variance is 1.48 - 1.5 = $(0.02) per micron

Quantity variance: Based on standard bill of material, Dawson Toys need 3,000 x 6 = 18,000 microns to produce 3,000 Maze toys. Actual consumption volume is 25,000 - 5,000 = 20,000 microns. So, quantity variance is 20,000 - 18,000 = 2,000 microns.

1. b. The labor rate and efficiency variances

Actual labor rate  = Actual labor cost / Actual hour = 88,000/4,000 = $22 per hour.

Efficiency variance = Actual labor rate - Standard labor rate = 22 - 21 = $1 per hour.

2. Prepare a brief explanation of the possible causes of each variance.

Direct material cost variance: Total actual material cost is 20,000 x 1.48 = $29,600, higher than standard material cost of 18,000 x 1.5 = $27,000. This is mainly due to higher production waste as compared to standards.

Direct labor cost variance: Total actual labor cost is $88,000, higher than standard labor cost of 4,000 x 21 = $84,000. This is mainly due to lower labor rate per hour than expected.

Explanation:

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Answer:

1. Relative price = $3

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Explanation:

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= $54÷$18

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3)Monetary neutrality is proposition that the change in the money supply affects the nominal variables but it does not affect the real variables.

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3 years ago
Businesses can legally employ only those workers who a. Were born in the United States b. Have immigrated to the United States b
MariettaO [177]

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<h3>Who can be legally employed?</h3>

A country should not employ (and it is unlawful to do so / informal company) someone who is not legally permitted to work in the United States (US), an illegal immigrant is an example).

However, if you have a Visa, <u><em>you can </em></u>work in the United States without being a US citizen.

In either situation, the only stipulation is that the company wants you and that you are willing to accept the <u>compensation</u> they are providing.

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2 years ago
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. Which is NOT a principle of organic farming? (a) Avoiding synthetic fertilizers (b) Keeping as much organic matter as possible
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Answer: Avoiding the use of fossil fuels

                                               

Explanation:  

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3. Thus kind of farming is build on relationships that ensure fairness with regard to common environment and life processes.

4. Such farming should be managed in a precautionary and responsible manner to protect the health and well being of current and future generations.

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If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she is perform
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If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she exists performing percentage analysis approach for horizontal analysis.

<h3>What is cost of goods sold?</h3>

The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.

Costs of Goods Sold (COGS) are the expenses incurred over a specific time period to produce your goods. COGS is calculated as initial inventory plus purchases minus ending inventory. An income statement's cost of goods sold (COGS) column lists the costs incurred by a business to produce, procure, and deliver a commodity or service to the final consumer.

The direct charge, cost, or expense related to producing goods and services that are sold to consumers at retail is known as the cost of goods sold. Overhead costs like rent, security fees, communication fees, etc. are not included in COGS.

Hence,  If a financial analyst divides a company's cost of goods sold for year 2 by its cost of goods sold for year 1, he/she exists performing percentage analysis approach for horizontal analysis.

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