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

Question

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 Standard Price or Rate Cost $ 2.50 per pound$17.25 Direct materials Direct labor 6.9 pounds 0.5 hours $13.50 per hour During the most recent month, the following activity was recorded: a. Thirteen thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,340 units, using 12,060 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. Seven hundred and seventy hours of direct labor time were recorded at a total labor cost of $9,240. Required Compute the materials price and quantity variances for the month. (Do not round intermediate calculations. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) Direct materials price variance Direct materials quantity variance

Explanation / Answer

Direct materials price variance 1340 Favorable 13400*(2.4-2.5) Direct materials quantity variance 7035 Unfavorable =2.5*(12060-1340*6.9)

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.