Direct Materials and Direct Labor Variances

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 qnty of hrs standard price or rate Standard cost

Direct Materials 4.6 pounds $2.50 per pound $11.50

Direct Labor 0.2 pounds $12.00 per pound $2.40

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

Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.

All of the material purchased was used to produce 4,000 units of Zoom

750 hours of direct labor time were recorded at a total labor cost of $10,425

Required:

Compute the direct materials price and quantity variances for the month

Compute the direct labor rate and efficiency variances for the month