Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

image text in transcribed
image text in transcribed
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 7.40 pounds 0.90 hours Direct materials Direct labor Standard Price or Rate 22.30 per pound $ 8.50 per hour Standard Cost $12.02 7.65 During the most recent month, the following activity was recorded a. Twenty one thousand five hundred pounds of material were purchased at a cost of $210 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom c.2.000 hours of direct labor time were recorded at a total labor cost of $21.000 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 doltar.) 1. Materials price variance 1 Materials quantity variance 2 Labor rate vanance 2 Labor efficiency variance 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 HOUS 7.40 pounds 0.90 hours Direct materials Direct labor Standard Price Rate $ 2.30 per pound $ 8.50 per hour Standard Cost $ 17.02 $ 7.65 During the most recent month, the following activity was recorded: a. Twenty one thousand five hundred pounds of material were purchased at a cost of $2.10 per pound, b. All of the material purchased was used to produce 2,500 units of Zoom. c 2,000 hours of direct labor time were recorded at a total labor cost of $21.000. 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 (ie, zero variance). Input all amounts os positive values. Round your intermediate calculations to the nearest whole dollar) $ 2,200 1. Matenals price variance 1 Materials quantity variance 2 Labor rate variance 2 Labor efficiency varianco

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction To Modern Financial Reporting Theory

Authors: Brian A Rutherford

1st Edition

9780761966074

More Books

Students also viewed these Accounting questions

Question

What is a normative statement? Is a normative statement testable?

Answered: 1 week ago