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:

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 $14,925.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.

Transcribed Image Text:

Standard Quantity or Hours Standard Price Standard or Rate Cost 4.6 pounds $2.50 per pound $18.00 per hour $11.50 $3.60 Direct materials Direct labor 0.2 hours