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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:

  1. 12,100.00 pounds of material were purchased at a cost of $2.50 per pound.

  2. All of the material purchased was used to produce 1,500 units of Zoom.

  3. 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.

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