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: During the most recent month, the following activity was recorded: a. Eleven thousand six hundred pounds of material were purchased at a cost of $2.90 per pound: b. The company produced only 1,160 units, using 10,440 pounds of material. (The rest of the material purchased remained in raw materials inventory) c 564 hours of direct labor time were recorded at a total labor cost of $6.768. 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. Do not round Intermediate calculations.) Dawson Toys, Limited, produces a toy called the Maze. The company has recently created a standard cost system to help control costs and has established the following standards for the Maze toy: Direct materials: 6 microns per toy at $0.34 per micron Direct labor: 1.3 hours per toy at $6.50 per hour During July, the company produced 5,500 Maze toys. The toy's production data for the month are as follows: Direct materials. 78,000 microns were purchased at a cost of $0.30 per micron, 36,750 of these microns were still in inventory at the end of the month. Direct labor: 7,550 direct laborthours were worked at a cost of $54,360. Required: 1. Compute the following variances for July. (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. Round final answer to the nearest whole dollar amount.) a. The materlals price and quantity variances. b. The labor rate and efficiency variances

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

Auditing a risk based approach to conducting a quality audit

Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg

9th edition

9781133939160, 1133939155, 1133939163, 978-1133939153

More Books

Students also viewed these Accounting questions

Question

=+9.73 The eating habits of 12 bats were examined in the

Answered: 1 week ago

Question

Cite ways to overcome fear of failure.

Answered: 1 week ago