9-4)
9-14)
9-5)
Exercise 9-14 (Algo) Direct Materials Variances [LO9-4] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for on unit of Zoom are given below: During the most recent month, the following activity was recorded: a. Twelve thousand two hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,220 units, using 10,980 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 710 hours of direct labor time were recorded at a total labor cost of $8,520. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for fovorable, "U" for unfovorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Bandar Industries Berhad of Malaysla manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,900 helmets, using 2,379 kilograms of plastic. The plastic cost the company $15,701. According to the standard cost card, each helmet should require 0.53 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,900 helmets? 2. What is the standard materials cost allowed (SQSP) to make 3,900 helmets? 3. What is the materlals spending variance? 4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4 , indicate the effect of each variance by selecting "F" for favorable, " U " for unfavorable, and "None" for no effect (i.e., zero varionce). Input all amounts as positive values. Do not round intermediate calculations.) SkyChefs, Incorporated, prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 3,400 of these meals using 1,300 direct labor-hours. The company paid its direct labor workers a total of $16,900 for this work, or $13.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $12.00 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 3,400 meals? 2. What is the standard labor cost allowed (SH SR) to prepare 3,400 meals? 3. What is the labor spending varlance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4 , indicote 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 os positive values. Do not round intermediate calculations.)
