Question

At the beginning of June, Bezco Toy Company budgeted 14,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows:

Direct materials	$14,000
Direct labor	9,800
Total	$23,800

The standard materials price is $0.40 per pound. The standard direct labor rate is $14.00 per hour. At the end of June, the actual direct materials and direct labor costs were as follows:

Actual direct materials	$13,100
Actual direct labor	9,200
Total	$22,300

There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 12,700 units during June.

Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places and round your answers to the nearest dollar, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Direct materials quantity variance	$fill in the blank 1	Unfavorable
Direct labor time variance	$fill in the blank 3	Unfavorable

----------------------------------------------------------------------

Atlas Furniture Company manufactures designer home furniture. Atlas uses a standard cost system. The direct labor, direct materials, and factory overhead standards for an unfinished dining room table are as follows:

Direct labor:	standard rate	$17.00 per hr.
	standard time per unit	4 hrs.
Direct materials (oak):	standard price	$9.00 per bd. ft.
	standard quantity	16 bd. ft.
Variable factory overhead:	standard rate	$2.40 per direct labor hr.
Fixed factory overhead:	standard rate	$0.80 per direct labor hr.

a. Determine the standard cost per dining room table. If required, round your answer to two decimal places.
$fill in the blank 1per table

Answer 1

1) When Company does not have direct material price and direct labor rate variance then Difference between standard cost and actual Cost are known as Material quantity variance and labor efficiency variance.

Material quantity variance = Standard cost-actual = 14000-13100 = -900 F

Labor efficiency variance = (9800/14000*12700)-9200 = 310 U

2) Standard cost per dinning room table

Direct labor (17*4)	68
Direct material (9*16)	144
Variable overhead (2.4*4)	9.6
Fixed overhead (4*.8)	3.2
Standard cost per dining room table	224.80