Reference no: EM131160499
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 7.50 pounds $ 2.30 per pounds $ 17.25
Direct labor 0.35 hours $ 7.50 per hour $ 2.63
During the most recent month, the following activity was recorded:
a. 16,500 pounds of material were purchased at a cost of $2.10 per pound.
b. All of the material purchased was used to produce 2,000 units of Zoom.
c. 500 hours of direct labor time were recorded at a total labor cost of $4,250.
Required:
1. Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).) direct materials price variance ___________ Direct materials quantity variance______________
2. Compute the labor rate and efficiency variances for the month. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)?Direct labor rate variance___________ Direct labor efficiency.
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