Pay attention to the fact that there is a different actual quantity of materials purchased and used!

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$.$ Twenty thousand pounds of material were purchased at a cost of $$2\mathrm{.}35$ per pound.

b$.$ The company produced only $3,000$ units, using $14,750$ pounds of material. $($The rest of the

material purchased remained in raw materials inventory.$)$

c$.750$ hours of direct labor time were recorded at a total labor cost of $$14,925.$

Required:

Compute the materials price and quantity variances for the month.

Note: 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.Pay attention to the fact that there is a different actual quantity of materials purchased and used!

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 $4\mathrm{.}6$ pounds $ $2\mathrm{.}50$ per pound $ $11\mathrm{.}50$

Direct labor $0\mathrm{.}2$ hours $ $18\mathrm{.}00$ per hour $ $3\mathrm{.}60$

During the most recent month, the following activity was recorded:

Twenty thousand pounds of material were purchased at a cost of $$2\mathrm{.}35$ per pound.

The company produced only $3,000$ units, using $14,750$ pounds of material. $($The rest of the material purchased remained in raw materials inventory.$)$