7. Huron Company produces a commercial cleaning compound known as Zoom. The dire

Question

7. 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:

8.

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 labor: 7,120 direct labor-hours were worked at a cost of $50,552.

1.

Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The company’s planning budget for May appears below:

7. 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:

8.

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 Quantity or Hours Standard Price or Rate 3.00 per pound $14.00 per hour Standard Cost $21.00 Direct materials 7.0 pounds Direct labor 0.4 hours 5.60 During the most recent month, the following activity was recorded a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. Six hundred and forty four hours of direct labor time were recorded at a total labor cost of $7,728 Required Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round intermediate calculations. Direct materials price variance Direct materials quantity variance

Explanation / Answer

7.

Working:

8.

1.a.

Working:

1b.

Working:

Direct material price variance 1360 Favourable Direct material quantity variance 8160 Unfavourable

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