O la https:/ Help Save & E 4 Huron Company produces a commerciall cleaning co un
ID: 2540824 • Letter: O
Question
O la https:/ Help Save & E 4 Huron Company produces a commerciall cleaning co unit of Zoom are given below known as Zoom The direct materials and direct labor ds for one Standard Quantity Price Standa per pound $19.24 Direct labor 0.45 hours 00r 3.60 During the most recent month, the following activity was recorded at a cost of $250 per pound a. 12,100.00 pounds of material were b. All of the material purchased was used to produce 1,500 units of Zoonm c. 575 hours of direct labor time were recorded at a total labor cost of $5,750 2 1. Compute the materials price and quantity variances for the month U for (For all effect (i.e. zero variance). Input all amounts as positive values Round your intermediate celculetions to the nearest whole dellar)Explanation / Answer
1. Direct material variance
a. Direct material price variance = (AQ x AP) - (AQ X SP)
= (12100 x 2.50) - (12100 x 2.60)
= 30250 - 31460
= 1210 (F)
b. Direct material quantity variance = (AQ x SP) - (SQ x SP)
= (12100 x 2.60) - [(1500 x 7.40) x 2.60)]
= 31460 - 28860
= 2600(U)
2. Direct labor variance
a. Direct labor rate variance = (AH x AR) - (AH x SR)
= 5750 - (575 x8)
= 5750 - 4600
= 1150 (U)
b. Direct labor eficiency variancy = (AH x SR) - (SH x SR)
= (575 x 8) - [(1500 x .45) x 8)]
= 4600 - 5400
= 800 (F)
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