Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 12

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:

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:

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 4,850 units during June.
Determine the direct materials quantity and direct labor time variances.