7 Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom follow: Standard Cost Standard Quantity or Hours 4.10 kilograms 0.41 hour 0.41 hour Direct materials Direct labour Variable overhead Standard Price or Rate $2.10 per kilogram $8.00 per hour $1.30 per hour 10 points $ 8.61 3.28 0.53 eBook The budgeted fixed overhead cost is $14,224 per month. The denominator activity level of the allocation base is 1,148 direct labour- hours. Print During the most recent month, the following activity was recorded: References a. 9,900 kilograms of material were purchased at a cost of $2.20 per kilogram. b. All of the material purchased was used to produce 2,800 units of Zoom. C. A total of 770 hours of direct labour time was recorded at a total labour cost of 9,086. d. The variable overhead cost was $1,540, and the fixed overhead cost was $22,811. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) . 7 a. 9,900 kilograms of material were purchased at a cost of $2.20 per kilogram. b. All of the material purchased was used to produce 2,800 units of Zoom. c. A total of 770 hours of direct labour time was recorded at a total labour cost of 9,086. d. The variable overhead cost was $1,540, and the fixed overhead cost was $22,811. 10 points Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance).) eBook Print Materials price variance Materials quantity variance References 7 10 points 2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) eBook Labour rate variance Labour efficiency variance Print References 7 10 points 3. Compute the variable overhead spending and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance). Round "Efficiency variance" to 2 decimal places.) eBook Print Variable overhead spending variance Variable overhead efficiency variance References . 7 10 points 4. Compute the fixed overhead budget and the volume variances for the month. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) eBook Print Fixed overhead budget variance Fixed overhead volume variance References 7 5. Compute the underapplied or overapplied overhead for the month. (Round intermediate calculations and round final answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance).) 10 points Total variable overhead variance Total fixed overhead variance eBook Print References overhead is