10-7 only

. Eter nine the number of actual labor-hours spent on tune-ups during the week. - Beuernine the actuai hourly raie of pay for tune-ups last week. (Round your answer to the nearest cent.) (Hint: A useful way to proceed would be to work from known to unknown data either by usin variance formulas in Exhibit 10-7 or by using the columnar format shown in Exhibit 10-6,) EXERCISE 10-6 Direct Materials and Direct Labor Varlances 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: Standard QuantityStandard PriceStandard or Hours or Rate Cost $2.50 per pound Direct materials Direct labor. 4.6 pounds 0.2 hours $11.50 $3.60 $18.00 per hour orded During the most recent month, the following activity was rec 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. EXERCISE 10-7 Direct Materials Variances LO10-1 Refer to the data in Exercise 10-6. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) Required: Compute the materials price and quantity variances for the month. EXERCISE 10-8 Direct Materials and Direct Labor Variances LO10-1, LO10-2 Dawson Toys, Ltd., produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy Direct materials: 6 microns per toy at $1.50 per micron Direct labor: 1.3 hours per toy at $21 per hour During July, the company produced 3,000 Maze toys. The toy's production data for the month are as follows: Direct materials: 25,000 microns were purchased at a cost of S1.48 per micron. 5,000 of these microns were still in inventory at the end of the month