Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, 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		Standard Price or Rate		Standard Cost
Direct materials	6.80	pounds	$ 2.90	per pound	$ 19.72
Direct labor	0.20	hours	$ 9.00	per hour	$ 1.80

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

15,100.00 pounds of material were purchased at a cost of $2.60 per pound.

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

300 hours of direct labor time were recorded at a total labor cost of $3,300.

Required:

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

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