Question
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom are given below:
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom are given below:
Standard quantity or hours Standard price or rate Standard cost
Direct materials 3.0 kilos 3.00 per kilo 9.00
Direct labour 0.5 hours 10.00 per hour 5.00
During the most recent month, the following activity was recorded:
1. 17,000 kilos of material were purchased at a cost of 2.90 per kilo.
2. All of the material purchased was used to produce 5,000 units of Zoom.
3. A total of 2,000 hours of direct labour time was recorded at a total labour cost of 26,600.
Required:
1. a. Compute the direct materials price variance for the month.
b. Compute the direct materials quantity variance for the month.
2. a. Compute the direct labour rate variance for the month. (Do not round your intermediate calculations.)
b. Compute the direct labour efficiency variance for the month.
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