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San Diego State University Operations And Supply Chain Management Assignment Help - System

Question - Topper Toys has developed a new toy called the Brainbuster. The company has a standard cost
system to help control costs and has established the following standards for the Brainbuster toy:

Direct materials: 7 diodes per toy at $0.34 per diode
Direct labor: 1.4 hours per toy at $7.10 per hour

During August, the company produced 5,300 Brainbuster toys. Production data on the toy for August

Direct materials: 74,000 diodes were purchased at a cost of $0.30 per diode. 27,625 of these diodes
were still in inventory at the end of the month.
Direct labor: 8,020 direct labor-hours were worked at a cost of $60,150.

1. Compute the following variances for August
a. Direct materials price and quantity variances.
Material pr ...Read More

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