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Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances (L010-1, LO10-2] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and

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Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances (L010-1, LO10-2] 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 6.50 pounds 0.30 hours Direct materials Direct labor Standard Price or Rate $ 1.90 per pound $13.00 per hour Standard Cost $12.35 $ 3.90 During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $170 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. C. 800 hours of direct labor time were recorded at a total labor cost of $12,000, 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. Round your intermediate calculations to the nearest whole dollar.) 1. Materials price variance 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: Direct materials Direct labor Standard Quantity or Standard Price Hours or Rate 6.50 pounds $ 1.90 per pound 0.30 hours $13.00 per hour Standard Cost $12.35 $ 3.90 During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $170 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom C. 800 hours of direct labor time were recorded at a total labor cost of $12,000 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. Round your intermediate calculations to the nearest whole dollar) 1. Materials price variance Materials quantity variance Laborrate variance 2. Labor efficiency variance

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