E9–2 Time allowed: 15 minutes Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom are given below:

During the most recent month, the following activity was recorded:
1 Twenty thousand kilos of material were purchased at a cost of £2.35 per kilo.
2 All of the material purchased was used to produce 4,000 units of Zoom.
3 A total of 750 hours of direct labour time was recorded at a total labour cost of £10,425.
Required 1 Compute the direct materials price and quantity variances for the month.
2 Compute the direct labour rate and efficiency variances for the month.

Transcribed Image Text:

Direct materials Direct labour Standard quantity or hours 4.6 kilos 0.2 hours Standard price or rate Standard cost 2.50 per kilo 11.50 12.00 per hour 2.40