Answer: 500F, 1000U, 4000U, 2100U
Explanation:
Given the following :
STANDARD PRODUCTION :
Direct materials = 6 microns per toy at $1.5 per micron
Direct labor = 1.3 hours at $21 per hour
JULY PRODUCTION :
Number of Maze toys produced = 3000
Direct materials = 25,000 microns at $1.48 per micron
5000 of of the microns were still in inventory at the end of the month
Direct labor = 4000 labor hours at $88000
A.) Material price variance for July
Variance = (Actual price - standard price) × actual quantity
=$(1.48 - 1.50) × 25,000
= - 0.02×25000 = - 500
=500F
Material quantity variance for july:
Actual quantity of material used (25,000 - 5,000) = 20,000
Standard quantity of material for the actual level of production = (3,000 toys x 6 microns per toy) = 18,000
Standard price per unit of material = $0.50
Therefore ;
Material quantity variance= (Actual quantity used - Standard quantity of material for actual level of production)
(20,000 - 18,000) × $0.50 = $1,000U
B.) Actual hours = 4000
Actual rate per hour = $88,000 ÷ 4000 = $22 per hour
Standard hour = 3000 × 1.3 = 3900
Standard rate = $21
Labor rate variance = [Actual rate - standard rate] × actual hour
[$22 - $21] × 4000 = $4000U
Labor efficiency variance :
[actual hour - standard hour] × standard rate
[4000 - 3900] × $21 = 100 ×$21 = 2100U
