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 | 7.40 | pounds | $ | 2.60 | per pound | $ | 19.24 |
Direct labor | 0.45 | hours | $ | 8.00 | per hour | $ | 3.60 |
During the most recent month, the following activity was recorded:
-
12,100.00 pounds of material were purchased at a cost of $2.50 per pound.
-
All of the material purchased was used to produce 1,500 units of Zoom.
-
575 hours of direct labor time were recorded at a total labor cost of $5,750.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started