Chapter 9 Question 4:

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 Quantity or Hours		Standard Price or Rate			Standard Cost
Direct materials	6.80	pounds	$	3.00	per pound	$	20.40
Direct labor	0.50	hours	$	11.00	per hour	$	5.50

During the most recent month, the following activity was recorded:

1. Twenty two thousand nine hundred pounds of material were purchased at a cost of $2.70 per pound.

2. All of the material purchased was used to produce 3,000 units of Zoom.

3. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200.

Required:

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

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