Griffon Corp. makes small plastic dog toys with the following material and labor standards:

During October, 60,000 pounds of material were acquired on account at $4.15 per pound. During October, 50,120 pounds of that were used in production during the month to make 100,000 toys. Factory payroll for October showed 20,600 direct labor hours at a total cost of $182,310.
a. Compute material and labor variances, basing the material price variance on the quantity of material purchased.
b. Assuming a perpetual inventory system is used, prepare the relevant general journal entries forOctober.

Transcribed Image Text:

Standard Quantity Standard Cost Material Labor 05 pound 12 minutes $4.00 per pound 900 per hour