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Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 7 microns per toy at $0.34 per micron Direct labor: 1.4 hours per toy at $6.50 per hour During July, the company produced 5,000 Maze toys. Production data for the month on the toy follow: Direct materials: 75,000 microns were purchased at a cost of $0.31 per micron. 31,250 of these microns were still in inventory at the end of the month. Direct labor: 7,400 direct labor-hours were worked at a cost of $50,320. Required: 1. Compute the following variances for July: (Do not round intermediate calculations. Round final answer to the nearest whole dollar. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) a. The materials price and quantity variances. b. The labor rate and efficiency variances.
Find gain or loss will be reported on the income statement for the sale of the machine?
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In the current year, Firm L purchased machinery costing $2,300,000 and elected to expense as much as possible under Section 179. How much of the expense can Firm L deduct under Section 179 if its taxable income before the deduction was $1,400,000?
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