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Category > Accounting Posted 20 Aug 2017 My Price 9.00

Bezco Toy Company

direct materials and direct labor variances

 

At the beginning of June, Bezco Toy Company budgeted 5,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

 

 

                                                                                                      Text Box: Direct materials $50,000 Direct labor 36,000 Total $86,000

 

The  standard  materials  price  is  $4.00  per  pound.  The  standard  direct  labor  rate is

$18.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

 

 

Actual direct materials

$49,600

Actual direct labor

  34,020

Total

$83,620

 

There were no direct materials price or direct labor rate variances for June. In addi- tion, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 4,850 units during    June.

Determine the direct materials quantity and direct labor time variances.

Answers

Maurice Tutor
(5)
Status NEW Posted 20 Aug 2017 09:08 AM My Price 9.00

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