At the beginning of April, Winslow Toy Company budgeted 50,000 toy action figures to be manufactured in
Question:
At the beginning of April, Winslow Toy Company budgeted 50,000 toy action figures to be manufactured in April at standard direct materials and direct labor costs as follows:
Direct materials .......................... $ 40,000
Direct labor .................................. 600,000
Total ............................................ $640,000
The standard materials price is $2.00 per pound. The standard direct labor rate is $16.00 per hour. At the end of April, the actual direct materials and direct labor costs were as follows:
Actual direct materials ................. $ 41,800
Actual direct labor ......................... 572,800
Total ............................................... $614,600
There were no direct materials price or direct labor rate variances for April. In addition, assume no changes in the direct materials inventory balances in April. Winslow Toy Company actually produced 48,500 units during April.
Determine the direct materials quantity and direct labor time variances.
Step by Step Answer:
Financial And Managerial Accounting
ISBN: 9780357714041
16th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler