Check my work 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 4.6 pounds 0.2 hours Standard Price or Rate $ 2.50 per pound $18.00 per hour Standard Cost $11.50 $ 3.60 Direct materials Direct labor 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. (For all requirements, Indicate 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 as positive values.) Materials price variance Materials quantity variance Labor rate variance Labor efficiency variance Check my work Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an elaborate distilling process. The company has developed standard costs for one unit of Fludex, as follows: Direct materials Direct labor Variable manufacturing overhead Total standard cost per unit Standard Quantity or Hours 2.5 ounces 1.4 hours 1.4 hours Standard Price or Rate $20.ee per ounce $22.50 per hour $ 3.50 per hour Standard Cost $ 50.00 31.50 4.90 $ 86.40 During November, the following activity was recorded related to the production of Fludex: inces a. Materials purchased, 12,000 ounces at a cost of $225,000. b. There was no beginning inventory of materials; however, at the end of the month, 2,500 ounces of material remained in ending inventory c. The company employs 35 lab technicians to work on the production of Fludex. During November, they each worked an average of 160 hours at an average pay rate of $22 per hour. d. Variable manufacturing overhead is assigned to Fludex on the basis of direct labor-hours. Variable manufacturing overhead costs during November totaled $18,200. e. During November, the company produced 3,750 units of Fludex Required: 1. For direct materials: a. Compute the price and quantity variances b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contract. Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and 15 pr 18 t 100, P90-14 0 Saved Help Save & Exit Check overhead costs during November totaled $18,200. e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-term purchase contra Would you recommend that the company sign the contract? Book 2. For direct labor: a. Compute the rate and efficiency variances b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senior technicians and assistants. During November, the company experimented with fewer senior technicians and more assistants in to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. rences Complete this question by entering your answers in the tabs below. Req 1A Req1B Reg 2A Reg 2B Reg 3 For direct materials, compute the price and quantity variances. (Indicate the effect of each variance by selecting "F" favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Materials price variance Materials quantity variance e. During November, the company produced 3,750 units of Fludex. Required: 1. For direct materials: a. Compute the price and quantity variances. b. The materials were purchased from a new supplier who is anxious to enter into a long-ter Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 35 technicians employed in the production of Fludex consisted of 20 senio assistants. During November, the company experimented with fewer senior technicians and n to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. aferences Complete this question by entering your answers in the tabs below. Req 1A Regis Reg 2A Reg 2B Reg 3 For direct labor, compute the rate and efficiency variances. (Indicate the effect of each variance by "U" for unfavorable, and "None" for no effect (i.e, zero variance). Input all amounts as positive valu Labor rate variance Labor officiency variance p or quay Varances. b. The materials were purchased from a new supplier who is anxious to enter into a Would you recommend that the company sign the contract? 2. For direct labor: a. Compute the rate and efficiency variances. b. In the past, the 35 technicians employed in the production of Fludex consisted of assistants. During November, the company experimented with fewer senior technici to reduce labor costs. Would you recommend that the new labor mix be continued? 3. Compute the variable overhead rate and efficiency variances. Complete this question by entering your answers in the tabs below. Req 1A Req1B Reg 2A Reg 2B Reg 3 Compute the variable overhead rate and efficiency variances. (Indicate the effect of each favorable, "U" for unfavorable, and "None" for no effect i.e., zero variance). Input all am Variable overhead rate variance Variable overhead efficiency variance