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 5.30 pounds 0.50 hours Standard Price or Rate $2.50 per pound $5.50 per hour Standard Cost $13.25 $ 2.75 Direct materials Direct labor During the most recent month, the following activity was recorded: a. Ten thousand two hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,020 units, using 9,180 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 610 hours of direct labor time were recorded at a total labor cost of $7,320. Required: Compute the materials price and quantity variances for the month. (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.) Materials price variance Materials quantity variance SkyChefs, Inc., prepares in-flight meals for a number of major airlines. One of the company's products is grilled salmon in dill sauce with baby new potatoes and spring vegetables. During the most recent week, the company prepared 4,400 of these meals using 1,700 direct labor-hours. The company paid its direct labor workers a total of $17,000 for this work, or $10.00 per hour. According to the standard cost card for this meal, it should require 0.40 direct labor-hours at a cost of $9.40 per hour. Required: 1. What is the standard labor-hours allowed (SH) to prepare 4,400 meals? 2. What is the standard labor cost allowed (SH ~ SR) to prepare 4,400 meals? 3. What is the labor spending variance? 4. What is the labor rate variance and the labor efficiency variance? (For requirements 3 and 4, 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. Do not round intermediate calculations.) 1. 2. 3. Standard labor-hours allowed Standard labor cost allowed Labor spending variance Labor rate variance Labor efficiency variance 4. Standard Quantity or Hours 7.50 pounds 0.80 hours Standard Price or Rate $2.40 per pound $7.00 per hour Standard Cost $18.00 $ 5.60 Direct materials Direct labor During the most recent month, the following activity was recorded: a. Thirteen thousand two hundred and fifty pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 1,000 hours of direct labor time were recorded at a total labor cost of $9,000. 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 Labor rate variance Labor efficiency variance 2
