Chapter 10 Homeworkx C O ezto.mheducation.com/hm.tpx?.-0.8223658508 133205 15124
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Chapter 10 Homeworkx C O ezto.mheducation.com/hm.tpx?.-0.8223658508 133205 1512409754337 Apps Maccounting/new) ois M mailG Googlemoodle 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 Standard Cost Direct materials 7.20 pounds $ 2.00 per pounds $14.40 0.35 hours $ 5.00 per hour1.75 Direct labor During the most recent month, the following activity was recorded: a. 21,000 pounds of material were purchased at a cost of $1.70 per pound b. All of the material purchased was used to produce 2,500 units of Zoom c. 725 hours of direct labor time were recorded at a total labor cost of $5,800 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 effect (Le, zero Direct materials price variance Direct materials quantity variance by selecting "Ffor favorable, U" for unfavorable, and "None" for no effect (Le, zero variance).) Direct labor rate variance Direct labor efficiency variance esc : F2Explanation / Answer
Direct material price=(PQ*AP)-(PQ*SP)
PQ=Actual material
AP=Actual price
SP=standard price
=(21000*1.7)-(21000*2)
=6300 and it is F
2b)Direct material quantity=SP(AQ-Sq)
SP=standard price
AQ= actual qunatity used
SQ=STANDARD QUANTITY ALLOWED
=2*(21000-(2600*7.2))
=4560 and it is U
Direct labour rate=(AH*AR)-(AH*SR)
AH=actual hours used
AR=actual rate per hour
SR=standard rate per hour
=725*((5800/725)-5)
=2175 and it is U
3b)
Direct labour efficency=SR(AH-SH)
SR=standard rate per hour'
AH=actual hours used
SH=standard hours allowed
=5*(725-(2500*0.35))
=750 and it is F
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