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	6.90	pounds	$ 2.60	per pound	$ 17.94
Direct labor	0.30	hours	$ 7.00	per hour	$ 2.10

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

19,250.00 pounds of material were purchased at a cost of $2.40 per pound.

All of the material purchased was used to produce 2,500 units of Zoom.

450 hours of direct labor time were recorded at a total labor cost of $4,500.

Required:

Compute the materials price and quantity variances for the month.

Compute the labor rate and efficiency variances for the month.