Direct Materials and Direct Labor Variances
Huron Company produces a commercial cleaning compound known asZoom. The direct materials and direct labor standards for one unitof Zoom are given below.
Standard qnty of hrs standard price orrate Standardcost
Direct Materials 4.6 pounds $2.50per pound $11.50
DirectLabor 0.2pounds $12.00 perpound $2.40
During the most recent month, thefollowing activity was recorded:
Twenty thousand pounds of material were purchased at a cost of$2.35 per pound.
All of the material purchased was used to produce 4,000 units ofZoom
750 hours of direct labor time were recorded at a total laborcost of $10,425
Required:
Compute the direct materials price and quantity variances forthe month
Compute the direct labor rate and efficiency variances for themonth
Direct Materials and Direct Labor Variances
Huron Company produces a commercial cleaning compound known asZoom. The direct materials and direct labor standards for one unitof Zoom are given below.
Standard qnty of hrs standard price orrate Standardcost
Direct Materials 4.6 pounds $2.50per pound $11.50
DirectLabor 0.2pounds $12.00 perpound $2.40
During the most recent month, thefollowing activity was recorded:
Twenty thousand pounds of material were purchased at a cost of$2.35 per pound.
All of the material purchased was used to produce 4,000 units ofZoom
750 hours of direct labor time were recorded at a total laborcost of $10,425
Required:
Compute the direct materials price and quantity variances forthe month
Compute the direct labor rate and efficiency variances for themonth
Related questions
| 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 | 4.6 | pounds | $ | 2.50 | per pound | $ | 11.50 |
| Direct labor | 0.2 | hours | $ | 12.00 | per hour | $ | 2.40 |
| | |||||||
| During the most recent month, the following activity was recorded: |
| a. | Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. |
| b. | The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) |
| c. | 750 hours of direct labor time were recorded at a total labor cost of $10,425. |
| 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).)
| |||||||
| 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 | 4.6 | pounds | $ | 2.50 | per pound | $ | 11.50 |
| Direct labor | 0.2 | hours | $ | 12.00 | per hour | $ | 2.40 |
| | |||||||
| During the most recent month, the following activity was recorded: |
| a. | Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. |
| b. | All of the material purchased was used to produce 4,000 units of Zoom. |
| c. | 750 hours of direct labor time were recorded at a total labor cost of $10,425. |
| 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 (i.e., zero 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 (i.e., zero variance).)
|
Huron Company produces a commercial cleaning compound known asZoom. The direct materials and direct labor standards for one unitof Zoom are given below:
| Standard Quantity or Hours | Standard Price or Rate | Standard Cost | |||||
| Directmaterials | 7.90 | pounds | $ | 2.10 | per pound | $ | 16.59 |
| Directlabor | 0.50 | hours | $ | 5.00 | per hour | $ | 2.50 |
During the most recent month, the following activity wasrecorded:
14,850.00 pounds of material were purchased at a cost of $2.00per pound.
All of the material purchased was used to produce 1,500 units ofZoom.
600 hours of direct labor time were recorded at a total laborcost of $4,200.
Required:
1. Compute the materials price and quantity variances for themonth.
2. Compute the labor rate and efficiency variances for themonth.
(For all requirements, Indicate the effect of eachvariance by selecting "F" for favorable, "U" for unfavorable, and"None" for no effect (i.e., zero variance). Input all amounts aspositive values. Round your intermediate calculations to thenearest whole dollar.)
