EXERCISE 10-1 Direct Materials Variances [010-1 Wl cuted eamgie 1041 andar Industries Berhad of Malaysia manufactures sortng equipment. Cone of te companys roduc. octal helt for he North American rate, requires specal reste. During the quar ending June 0, the company menufactred 36 200helnets, using 22500 klegrans of paste. ‘Tha pase cost ne company $17,006 ‘According tothe standard oost re, each helmet shoul equ 0.8 logiams ofpastio, et «cost of $8 perklegran. Feqire rere erected eee ete 2. Brock down theciference computed in (1) above ine teria pre eed [EXERCISE 10-2 Direct Labor Valances [L.010-2] WM cuted angie 102 ‘SeyChel, Ino, prepares infight meas fora numberof msjr sities. One the company's products giles salman in lil use with baby new potabes ene spring vegetables Dixing the most ecentwaak the ‘compan prepared 400) ofthese meas wing O60 sectlaber hours The company pac these arect abo workers @totel of $2000 "ECTS WOH, cr $10.00 parrour ‘According tothe standard cost sare forths meal, t shoul require 025 rect latorhours at cost of $2.78 pe: hou. Reqiret: fetus ret ator cost 2. Brace dun thecfercnoa 2omputa in (1) aboveino a lberrate[EXERCISE 10-2 Variable Overhead Variances (LO10-21 Wl cuted ample 103 Logis Sotions proves order uflment services for dt com merchants. The company sinisins warehouses tat stock tems coriedby is dot.com ders. When acent receives an order fom customer. the cers farce to Logis Soins, which plls he tam from storage, poke anc ships ita he ustomer. The sompany uses a preetermines| variable vernees ete base on drectlabor hours Inthe mest recent mont, 120,000 tems were shispad to customers using 2900 direct laber-hours The comanyincured toa of $7,260 varie crertaad cats, {ellen enor forone tem ard he vnriahle ethan rat = $225 pr rect latorhout Fequires 1. Accecig othe stenderds what vrcble overhead cost shoud have ean incur oil orders ore {20,000 tame’? How much oes 2. Breck down the cifrenoe compuiedin (1) stoveinte vail ‘overead rat vananoe an @varsble overhead eicencyvenarce, [EXERCISE 10-¢ Direct Materials ané Diet Labor Variances [LO‘0-4, LO‘0-21 Huron Company produoess commercial leering compoundknown as Standard Quanity Standard Price Stara or Hous or Pate Cost Dinet maria + @pourde $250 pe pound $11.50 Divot ber... 1 a2tous —$i2c0pehour 240 Curing the mostrecent month, he following atv was rcordes Deere ee erent Pet 'b Alofthemsieri purchased wes ise groduce 4.000 units of Zoom © 750 tours ofiet abo: ime were racorded ts totllabor cost of 310.28, Feqire 1. Compute the mateals price and arty variances for the rents 2. Compute he laborrate ane eftteney varneas fr the mont,EXERCISE 10- Direct Materials and Direct Labor Variances [LO10-4, LO10-2] [Dawson Toys, Li, produces toy ded te Maze. The company hes reenlycolablished a atc cst ayster toes canel coats anc has cestabched the following stnderdaforihe Maze ty: Direct mati 6 micron pe toy at $050 permicon Direct laber: 1.3 hours pe toy at 8 per hour Dung Juy, re company prosuced 3.000 Maze toy, Proaucton deta for te mont onthe ty oon rect material: 25,000 micons were purchased ata cos of $048 par eran. 5000 ofthese micron ware stilininventery at the end ofthe month Drectlabor. 4.000 drect ator hours ware worked at «costo $38,000. Required. 1. Compute the fotowng vaenoes for Ju: 1 The mstenas pace snc quanty variances. The aber rte and efficiency variances 2 Prepares bref expansion of the possible couses ofeach variance,