A company produces a 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 7.20 pounds $ 2.90 per pound $ 20.88 Direct labor 0.50 hours $ 10.00 per hour $ 5.00 During the most recent month, the following activity was recorded: 16,900.00 pounds of material were purchased at a cost of $2.60 per pound. All of the material purchased was used to produce 2,000 units of Zoom. 800 hours of direct labor time were recorded at a total labor cost of $8,800. Required: Compute the materials price and quantity variances for the month. Compute the labor rate and efficiency variances for the month.

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: Direct materials Direct labor Standard Quantity or Hours 7.80 pounds 0.30 hours During the most recent month, the following activity was recorded: Standard Price or Rate Standard Cost $ 2.50 per pound $6.00 per hour a. Nine thousand three hundred pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,000 units of Zoom. c. 200 hours of direct labor time were recorded at a total labor cost of $1,400. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. 1 Materials price variance 1. Materials quantity variance 2 Labor rate variance 2 Labor efficiency variance $19.50 $ 1.80 (For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable,…

Lehighton Chalk Company manufactures sidewalk chalk, which it sells online by the box at $25 per unit. Lehighton uses an actual costing system, which means that the actual costs of direct material, direct labor, and manufacturing overhead are entered into work-in-process inventory. The actual application rate for manufacturing overhead is computed each year; actual manufacturing overhead is divided by actual production (in units) to compute the application rate. Information for Lehighton's first two years of operation is as follows: Sales (in units) Production (in units) Production costs: Variable manufacturing costs Fixed manufacturing overhead Selling and administrative costs: Variable Fixed Based on absorption costing Finished-goods inventory Retained earnings Year 1 2,600 3,100 $15,500 18,600 Based on variable costing Finished-goods inventory Retained earnings LEHIGHTON CHALK COMPANY Selected Balance Sheet Information End of Year 1 10,400 9,400 $ 5,500 11,100 Selected information…

The following direct materials and direct labor data pertain to the operations of Engles Manufacturing Company for the month of August. Costs Actual labor rate   $13  per hour Actual materials price   $128  per ton Standard labor rate   $12.50  per hour Standard materials price   $130  per ton   Quantities Actual hours incurred and used   4,150 hours Actual quantity of materials purchased and used   1,220 tons Standard hours used   4,300 hours Standard quantity of materials used   1,200 tons The total, price, and quantity variances for materials and labor are as follows: Total materials variance   $160 Unfavorable Materials price variance   $2,440 Favorable Materials quantity variance   $2,600 Unfavorable Total labor variance   $200 Unfavorable Labor price variance   $2,075 Unfavorable Labor quantity variance   $1,875 Favorable (b)Provide two possible explanations for each of the unfavorable variances given above, and suggest where…

The Mixing Department performs a series of processes in which a fluid chemical is concentrated. Records indicate that the Mixing Department has been charged with $50,000 of direct labor costs. The manufacturing overhead rate is 170% of direct labor costs. Beginning work in process was $170,000, and ending work in process totaled $36,000. One half of this period’s completed products is sold on account at a price equal to 150% of its cost. Prepare journal entries to record (1) various costs charged to the Mixing Department this period, (2) transfer of this period’s completed product, and (3) sale of one-half of this period’s production.

Ivanhoe, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 200 pressure gauges were produced, and overhead costs of $87,970 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities Cost Drivers Total Cost 1. Materials handling Number of requisitions $37,800 2. Machine setups Number of setups 28,320 3. Quality inspections Number of inspections 21.850 $87,970 The cost driver volume for each product was as follows. Cost Drivers Instruments Gauges Total Number of requisitions 405 645 1.050 Number of setups 190 290 480 Number of inspections 230 245 475

The standards for one case of Saycheles are:  Direct materials 7 lbs. @ $5.90/lb. Direct labor 4.2 hrs. @ $13.00/hr.  During the week ended April 15, the following activity took place: • 14,500 lbs. of raw material were purchased for inventory at a total cost of $81,200; • 1,800 cases of finished product were produced; • 13,680 lbs. of raw material were used; • 7,380 labor hours were worked at an average rate of $13.40 per hour.  Calculate each of the following variances: (a.) Raw materials purchase price variance. (b.) Raw materials usage variance. (c.) Direct labor rate variance. (d.) Direct labor efficiency variance. (e.) Explain the factors that most likely caused the variances computed above.

Domestic

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: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate 6.90 pounds $ 2.60 per pound 0.30 hours $ 7.00 per hour Standard Cost $ 17.94 $ 2.10 During the most recent month, the following activity was recorded: a. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $2.40 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 450 hours of direct labor time were recorded at a total labor cost of $4,500. 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…

BrightWater, LLP uses a standard costing system to collect costs related to the production of its mineral-infused water. The direct labor standard for each unit is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, BrightWater’s unit production used 9,820 direct labor hours at a total direct labor cost of $106,547. This resulted in production of 8,500 units for November.  What is BrightWater’s labor efficiency variance for November?   Select one: a. $10,328 favorable. b. $13,047 unfavorable. c. $8,855 favorable. d. $14,520 unfavorable. e. Unable to calculate from the information given.