Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] Huron Company produces a commercial...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] 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: Direct materials Direct labor Standard Quantity or Hours 6.50 pounds 0.30 hours Standard Price or Rate Standard Cost $ 12.35 $ 3.90 $ 1.90 per pound $ 13.00 per hour During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar. 1. Materials price variance $ 4,100 F 1. Materials quantity variance 1,900 U 2. Labor rate variance 2. Labor efficiency variance $ 1,300 F Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2] 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: Direct materials Direct labor Standard Quantity or Hours 6.50 pounds 0.30 hours Standard Price or Rate Standard Cost $ 12.35 $ 3.90 $ 1.90 per pound $ 13.00 per hour During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $12,000. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar. 1. Materials price variance $ 4,100 F 1. Materials quantity variance 1,900 U 2. Labor rate variance 2. Labor efficiency variance $ 1,300 F
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
Study the following reaction scheme: a. Identify the substances A to F by giving their names and formulae. b. Write a balanced chemical equation for the formation of gas B. c. (i) Describe a chemical...
-
Consider two independent projects, A and B, with cash flows presented. Assume that the cost of capital, e the required rate of return is 14%. Note the Year 0 cash flow represents the initial cost of...
-
Because of technology advances, risk management will become less of a priority for future Purchasing and Supply managers. T or F
-
The team's velocity has been 20 story points/sprint. They have 200 points remaining in the backlog for this release. The sprint length is two weeks. How many more weeks will it take to complete the...
-
Northup was incorporated on January 1, 2010, and adopted a calendar year for tax purposes. It had the following gross receipts for its first six taxable years: 2010 . $4,282,000 2011 . 8,418,000 2012...
-
Determine the sag of a 30-ft chain that is attached to two points at the same elevation that are 20 ft apart.
-
Identify the asset class for each of the following: (a) supplies, (b) office equipment, (c) inventory, (d) land for future expansion, and (e) trucks used in operations.
-
Call Options Hedging Foreign Currency Debt Taking advantage of lower interest rates in the United Kingdom, Carlton Inc., a U.S. firm, borrowed 2,000,000 on July 1, 2012, to be repaid in one year....
-
A company with a debt-to-equity ratio of 2.5 and $10 million of assets has a debt of _______? ***Note: Please type the answer, don't send a handwritten version***
-
Three single-phase transformers are each rated 460 V/ 13.2 kV 400 kVA, 5% short - circuit reactance. The three single-phase transformers are connected as a three-phase Y Y transformer. A bank of...
-
3 Cholla Company's standard fixed overhead rate is based on budgeted fixed manufacturing overhead of $11,100 and budgeted production of 30,000 units. Actual results for the month of October reveal...
-
1. Common units of Pressure include, Pascal, psi, atm., inches of Hg, and inches of water to name a few. So, if a book states that 1 inch of water pressure is equal to 248.84 Pascals (N/m), how would...
-
Mack's Juices produces and bottles a line of fruit juices. The manufacturing process entails mixing and adding juices and other ingredients at the bottling plant, which is a part of Blending...
-
The system in the figure is in balance mass so that it cannot be What should be the weight of the object? TA = ? kN Wm = ? kN L/3 A 25 30 2L/3 Hg = 0.20- 0 = 40 H = 0.40 m
-
Certain merchandise items, like posters, have event dates and event schedules that are specific to a given year. That means the posters for this years festival can only be sold once. The cost to...
-
Discuss the typical architecture of the master data and its components in SAP ERP and explain its importance in Sales and Distribution (S&D) module. Explain the Material Master specification in SAP...
-
Why are stocks usually more risky than bonds?
-
What kinds of foreign exchange risk would a U.S. company face that is exporting goods to Mexico? What kinds of things would you monitor to determine what will happen to the value of the Mexican peso?
-
Extract the annual report of a Fortune Global 500 company from a country different from your home country; use the site www.glgc.com/g600.html, or...
-
Plan a study term abroad. What would you want to learn and why? How would this change if you were a business?
Study smarter with the SolutionInn App