Exercise 10-6 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	6.40	pounds	$	1.70	per pound	$	10.88
Direct labor	0.40	hours	$	14.00	per hour	$	5.60

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

1. 18,500.00 pounds of material were purchased at a cost of $1.40 per pound.

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

3. 800 hours of direct labor time were recorded at a total labor cost of $13,600.

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.)

Exercise 10-5 Working Backwards from Labor Variances [LO10-2]

The auto repair shop of Quality Motor Company uses standards to control the labor time and labor cost in the shop. The standard labor cost for a motor tune-up is given below:

	Standard Hours	Standard Rate	Standard Cost
Motor tune-up	2.50	$30.00	$75.00

The record showing the time spent in the shop last week on motor tune-ups has been misplaced. However, the shop supervisor recalls that 50 tune-ups were completed during the week, and the controller recalls the following variance data relating to tune-ups:

Labor rate variance	$	250	F
Labor spending variance	$	200	U

Required:

1. Determine the number of actual labor-hours spent on tune-ups during the week.

2. Determine the actual hourly rate of pay for tune-ups last week. (Round your answer to 2 decimal places.)