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Chrome File Edit View History Bookmarks People Window Help D Hw 10 xChapter Quiz 2 C O ezto.mheducation.com/hm.tpx 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 Standard Price Standard Hoursor Rate Cost Direct materials 7.30 pounds $ 2.25 per pounds $16.43 0.65 hours $ 6.50 per hour S 4.23 Direct labor During the most recent month, the following activity was recorded: a. 16,600 pounds of material were purchased at a cost of $2.05 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom c. 1,200 hours of direct labor time were recorded at a total labor cost of $11,400. Required: 1. 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 effoct (Le, zero variance)-) Direct materials price variance Direct materials quantity variance 2. Compute the labor rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F for favorable, "U" for unfavorable, and "None" for no effect (.e., zero varlance)) Direct labor rate variance Direct labor efficiency variance MacBook

Explanation / Answer

1 Direct materials price variance = 16600*(2.05-2.25)= 3320 Favorable Direct materials quantity variance = 2.25*(16600-2000*7.3)= 4500 Unfavorable 2 Direct labor rate variance = 11400-(1200*6.5)= 3600 Unfavorable Direct labor efficiency variance = 6.5*(1200-2000*0.65)= 650 Favorable

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