Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Just need help finding the labor efficiency variance Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards
Just need help finding the 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 Standard Price or Standard Hours Rate Cost Direct. materials 1' . 3-D pounds 5 2 . 80 per pound $ 20 . 44 Direct. labor 0.61} hours 5 9.00 per hour 5 5.40 During the most recent month, the following activity was recorded: a. Sixteen thousand six hundred pounds of material were purchased at a cost of $2.50 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 1.000 hours of direct labor time were recorded at a total labor cost of $12000. 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 dollar} X Answer is not complete. 1. Materials price variance 4,980 F 1. Materials quantity variance 5,600 U 2. Labor rate variance $ 3,000 U 2. Labor efficiency variance FStep 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