Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5] 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: During the most recent month, the following activity was recorded: 3. Twenty five thousand nine hundred pounds of material were putchased at o cost of $210 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 700 hours of direct lobor time were recorded at a total labor cost of $6.300 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 (Le., zero variance). Input all amounts as positive values, Round your intermediate calculations to the nearest whole dollar.) While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example. wages should be $7,400 plus $3,20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Required: Caiculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: The Production Department planned to work 4,000 labor-hours in March, however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below. Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexble budget for the month. 3. Calculose the spending variances for all expense items. Chapter 9 -Required Connect Homework (i) Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for favorable for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.) Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5] 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: During the most recent month, the following activity was recorded: 3. Twenty five thousand nine hundred pounds of material were putchased at o cost of $210 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 700 hours of direct lobor time were recorded at a total labor cost of $6.300 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 (Le., zero variance). Input all amounts as positive values, Round your intermediate calculations to the nearest whole dollar.) While gelato is sold by the cone or cup, the shop measures its activity in terms of the total number of liters of gelato sold. For example. wages should be $7,400 plus $3,20 per liter of gelato sold and the actual wages for June were $28,400. Via Gelato expected to sell 6,400 liters in June, but actually sold 6,600 liters. Required: Caiculate Via Gelato revenue and spending variances for June. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfovorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Exercise 9-16 (Algo) Flexible Budgets in a Cost Center [LO9-1, LO9-2] Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: The Production Department planned to work 4,000 labor-hours in March, however, it actually worked 3,800 labor-hours during the month. Its actual costs incurred in March are listed below. Required: 1. Prepare the Production Department's planning budget for the month. 2. Prepare the Production Department's flexble budget for the month. 3. Calculose the spending variances for all expense items. Chapter 9 -Required Connect Homework (i) Prepare the Production Department's planning budget for the month. Prepare the Production Department's flexible budget for the month. Calculate the spending variances for all expense items. (Indicate the effect of each variance by selecting "F" for favorable for unfavorable, and "None" for no effect (1.e., zero variance). Input all amounts as positive values.)
