ezto Main view Huron Company produces a commercial cleaning compound known as Zo

Question

ezto Main view Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below Standard Quantily or Standard Price S or Rate Cost Direct materials 6.80 pounds $ 3.00 per pounds $20.40 0.50 hours $11.00 per hour5.50 Hours Direct labor During the most recent month, the following activity was recorded: a. 22,900 pounds of material were purchased at a cost of $2.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200. 1. Compute the materials price and quantty variances for the month. (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no ffect (i.e., zero variance).) Direct materials price variance Direct materials quantity variance 2 Compute the labor rate and efficiency variances by celecting "F for favorable. "U" for unfavorable, and "None" for no eflect (le., zero variance). Do not round your intermediate calculations.) Direet labor rate variance Direct labor efficiency variance MacBook Air

Explanation / Answer

1 Direct materials price variance=22900*(2.7-3)= $6870 F Direct materials quantity variance=3*(22900-3000*6.8)= $7500 U 2 Direct labor rate variance=18200-(1400*11)= $2800 U Direct labor efficiency variance=11*(1400-3000*0.5)= $1100 F

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