Question

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...

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 6.40 pounds $ 1.70 per pound $ 10.88
Direct labor 0.40 hours $ 14.00 per hour $ 5.60

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

  1. Eighteen thousand five hundred pounds of material were purchased at a cost of $1.40 per pound.

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

  3. 800 hours of direct labor time were recorded at a total labor cost of $13,600.

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.)

1. materials price variance
materials quantity variance
2. labor rate variance
labor efficiency variance

Homework Answers

Answer #1

Solution :

1. Material Price Variance $ 5,550 F
Material Quantity Variance $ 4,250 U
2. Labor Rate Variance $ 2,400 U
Labor Efficiency Variance $ 2,800 F

Working :

1.

Material Price Variance = (SR - AR) * Actual Quantity Used

= ($ 1.70 - $ 1.40) * 18,500

= $ 5,550 Favorable

Material Quantity Variance = (SQ - AQ) * SR

= [(2,500 * 6.40) - 18,500] * $ 1.70

= [16,000 - 18,500] * 1.70

= $ 4,250 Unfavorable

2.

Labor Rate Variance = (SR - AR) * Actual Hours

= [$ 14 - ($ 13,600 / 800)] * 800

= [$ 14 - $ 17] * 800

= $ 2,400 Unfavorable

Labor Efficiency Variance = (SH - AH) * SR

= [(2,500 * 0.40) - 800] * $ 14

= [1,000 - 800] * $ 14

= 2,800 Favorable   

Please vote up and write your doubts in comment section. Would be glad to help you further.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 $ 2.40 per pound $ 18.00 Direct labor 0.80 hours $ 7.00 per hour $ 5.60 During the most recent month, the following activity was recorded: 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. All of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 7.10 pounds $ 1.80 per pounds $ 12.78       Direct labor 0.20 hours $ 12.00 per hour $ 2.40     During the most recent month, the following activity was recorded: a. 19,250 pounds of material were purchased at a cost of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 4.6 pounds $ 2.50 per pound $ 11.50 Direct labor 0.2 hours $ 18.00 per hour $ 3.60 During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. All...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 6.80 pounds $ 3.00 per pound $ 20.40 Direct labor 0.50 hours $ 11.00 per hour $ 5.50 During the most recent month, the following activity was recorded: Twenty two thousand nine hundred pounds of material were purchased at a cost of $2.70...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 6.40 pounds $ 2.40 per pound $ 15.36 Direct labor 0.25 hours $ 11.50 per hour $ 2.88 During the most recent month, the following activity was recorded: 17,500.00 pounds of material were purchased at a cost of $2.20 per pound. All of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 6.00 pounds $ 2.30 per pound $ 13.80 Direct labor 0.50 hours $ 10.00 per hour $ 5.00 During the most recent month, the following activity was recorded: 11,000.00 pounds of material were purchased at a cost of $2.10 per pound. All of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 7.90 pounds $ 2.10 per pound $ 16.59 Direct labor 0.50 hours $ 5.00 per hour $ 2.50 During the most recent month, the following activity was recorded: 14,850.00 pounds of material were purchased at a cost of $2.00 per pound. All of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 $ 2.40 per pound $ 18.00 Direct labor 0.80 hours $ 7.00 per hour $ 5.60 During the most recent month, the following activity was recorded: 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. All of...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 4.6 pounds $ 2.50 per pound $ 11.50 Direct labor 0.2 hours $ 18.00 per hour $ 2.40 During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. The...
1.Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
1.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: 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. All of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT