solve 8-14

EXERCISE 8-13 Direct Materials and Direct Labor Variances [LO8-4, LO8-5] Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and Refer to the data in Exercise 8-13. Assume that instead of producing 4,000 units during the month, the company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. Chapter 8 The Standard Cost direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours Direct materials 4.6 pounds Direct labor 0.2 hours Standard Price or Rate $2.50 per pound $12.00 per hour $11.50 $2.40 During the most recent month, the following activity was recorded: b. All of the material purchased was used to produce 4,000 units of Zoom c. 750 hours of direct labor time were recorded at a total labor cost of $10,425. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. EXERCISE 8-14 Direct Materials Variances [LO8-4] remained in raw materials inventory.) Required: Compute the materials price and quantity variances for the month. enue and Spending Variances [LO8-1, LO8-27