Question
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:
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 | 7.00 | pounds | $ 2.20 | per pound | $ 15.40 |
Direct labor | 0.45 | hours | $ 7.00 | per hour | $ 3.15 |
During the most recent month, the following activity was recorded:
19,500.00 pounds of material were purchased at a cost of $2.10 per pound.
All of the material purchased was used to produce 2,500 units of Zoom.
1,025 hours of direct labor time were recorded at a total labor cost of $9,225.
Required:
Compute the materials price and quantity variances for the month.
Compute the labor rate and efficiency variances for the month.
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