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Exercise 8-9: Direct Materials and Direct Labor Variances (LO2, LO3) Topper Toys produces a toy called the Brainbuster.
Exercise 8-9: Direct Materials and Direct Labor Variances (LO2, LO3)Topper Toys produces a toy called the Brainbuster. The company has recently established a standard costsystem to help control costs and has established the following standards for the Brainbuster toy:Direct materials: 6 diodes per toy at $0.80 per diodeDirect labor: 1.60 hours per toy at $8.10 per hourDuring August, the company produced 1,000 Brainbuster toys. Production data for August follow:Direct materials: 15,000 diodes were purchased at a cost of $0.60 per diode. 3,000 of these diodes were stillin inventory at the end of the month.Direct labor: 2,000 direct labor-hours were worked at a cost of $18,200.
