Huron Company produces a 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 7.00 pounds 0.40 hours Materials price variance Materials quantity variance During the most recent month, the following activity was recorded: a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 644 hours of direct labor time were recorded at a total labor cost of $7,728. Standard Price or Rate $ 3.00 per pound $14.00 per hour 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. Do not round intermediate calculations. $ $ Standard Cost $ 21.00 $ 5.60 1,360 F 6,840 U

Huron Company produces a 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 7.00 pounds 0.40 hours Materials price variance Materials quantity variance During the most recent month, the following activity was recorded: a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 644 hours of direct labor time were recorded at a total labor cost of $7,728. Standard Price or Rate $ 3.00 per pound $14.00 per hour 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. Do not round intermediate calculations. $ $ Standard Cost $ 21.00 $ 5.60 1,360 F 6,840 U

Name: 9 Exercise 10-7 (Algo) Direct Materials Variances [LO10-1]Huron Compan
Uploaded: 2024-03-20T06:33:06.000Z
Channel: Bartleby
Description: 9 Exercise 10-7 (Algo) Direct Materials Variances [LO10-1]Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoomare given below:Direct materialsDirect laborStandard Quantity orHo

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead

Section: Chapter Questions

Problem 8E: Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an...

See similar textbooks

Similar questions

Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an average of 10,000 units each month. The factory standards are 20,000 hours of direct labor and 10,000 pounds of materials for this volume. The standard cost of direct labor is 9.00 per hour, and the standard cost of materials is 4.00 per pound. The standard factory overhead at this level of production is 20,000. During the current month the production and cost reports reflected the following information: On the basis of this information: 1. Prepare a standard cost summary. 2. Calculate the materials (use the materials purchase price variance) and labor cost variances, and indicate whether they are favorable or unfavorable, using the formulas on pages 421422 and 424.
Use the following information to complete Brief Exercises 10-25 and 10-26: Tico Inc. produces plastic bottles. Each bottle has a standard labor requirement of 0.03 hour. During the month of April, 900,000 bottles were produced using 25,200 labor hours @ 15.00. The standard wage rate is 13.50 per hour. 10-25 Total Labor Variance Refer to the information for Tico Inc. on the previous page. Required: Calculate the total variance for production labor for the month of April.
Use the following information to complete Brief Exercises 10-36 and 10-37: Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03 hour. During the month of May, 500,000 cans were produced using 14,000 labor hours @ 15.00. The standard wage rate is 14.50 per hour. 10-37 Labor Rate and Efficiency Variances Refer to the information for Ambient Inc. above. Required: Calculate the labor rate and efficiency variances using the columnar and formula approaches.
Refer to Cornerstone Exercise 9.1. Guillermos Oil and Lube Company provided the following information for the production of oil changes during the month of June: Actual number of oil changes performed: 980 Actual number of direct labor hours worked: 386 hours Actual rate paid per direct labor hour: 14.50 Standard rate per direct labor hour: 14.00 Required: 1. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the formula approach. 2. Calculate the direct labor rate variance (LRV) and the direct labor efficiency variance (LEV) for June using the graphical approach. 3. Calculate the total direct labor variance for oil changes for June. 4. What if the actual wage rate paid in June was 12.40? What impact would that have had on the direct labor rate variance (LRV)? On the direct labor efficiency variance (LEV)?
Use the following information to complete Brief Exercises 10-36 and 10-37: Ambient Inc. produces aluminum cans. Each can has a standard labor requirement of 0.03 hour. During the month of May, 500,000 cans were produced using 14,000 labor hours @ 15.00. The standard wage rate is 14.50 per hour. 10-36 Total Labor Variance Refer to the information for Ambient Inc. above. Required: Calculate the total variance for production labor for the month of May.
es 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 Price or Rate $ 1.80 per pound $ 12.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor Standard Quantity or Hours 7.10 pounds 0.20 hours 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance a. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 400 hours of direct labor time were recorded at a total labor cost of $5,200. Standard Cost $ 12.78 $2.40 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,…
ces Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards fo one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 4.6 pounds 0.2 hours Materials price variance Materials quantity variance Standard Price or Rate $ 2.50 per pound $18.00 per hour During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 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. Standard Cost $ 11.50 $ 3.60 Required: 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). Input all amounts as positive…
Subm The standards for product V28 call for 8.0 pounds of a raw material that costs $18.80 per pound. Last month, 1,900 pounds of the raw material were purchased for $35,340. The actual output of the month was 210 units of product V28. A total of 1,800 pounds of the raw material were used to produce this output. The direct materials purchases variance is computed when the materials are purchased. Required: a. What is the materials price variance for the month? b. What is the materials quantity variance 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. a. Materials price variance b. Materials quantity variance
ssignment-Variance Analysis i Saved 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 Standard Price Standard Hours or Rate $2.10 per pound $5.00 per hour Cost $16.59 $ 2.50 Direct materials 7.90 pounds 0.50 hours Direct labor ok During the most recent month, the following activity was recorded: nces a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. C. 600 hours of direct labor time were recorded at a total labor cost of $4,200. 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…
1. Embertson Framing's cost formula for its supplies cost is $1,350 per month plus $16 per frame. For the month of June, the company planned for activity of 816 frames, but the actual level of activity was 812 frames. The actual supplies cost for the month was $14,680. The activity variance for supplies cost in June would be closest to: a. $64 U b. $64 F c. $274 U d. $274 F 2.MARRY Manufacuting reports the following information at year end. Actual overhead applied $257,000. Flexible budget based on standard hours $309,000. Flexible budget based on actual hours $293,000 What is the amount of the efficiency variance? a. $36,000 (F) b. $16,000 (UF) c. $36,000 (UF) d. $16,000 (F) 3.Venanzi Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $40,720 per month plus $2,646 per flight plus $11 per passenger. The company expected its activity in September to be 62 flights and 288…
Direct Materials and Direct Labor Variance Analysis Shasta Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 40 employees. Each employee presently provides 32 hours of labor per week. Information about a production week is as follows: Standard wage per hour $17.40 Standard labor time per unit 15 min. Standard number of Ibs. of brass 1.9 Ibs. Standard price per Ib. of brass $10.75 Actual price per Ib. of brass $11.00 Actual Ibs. of brass used during the week 13,503 Ibs. Number of units produced during the week 6,900 Actual wage per hour $17.92 Actual hours for the week (40 employees × 32 hours) 1,280 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Direct materials standard cost per unit Direct labor standard cost per unit Total standard cost per unit b. Determine the direct materials price variance, direct materials quantity…
Direct Materials and Direct Labor Variance Analysis Jericho Fixture Company manufactures faucets in a small manufacturing facility. The faucets are made from brass. Manufacturing has 30 employees. Each employee presently provides 40 hours of labor per week. Information about a production week is as follows: Line Item Description Value Standard number of lbs. of brass 1.5 lbs. Standard price per lb. of brass $12.75 Standard wage per hour $15.60 Standard labor time per unit 20 min. Actual price per lb. of brass $13.00 Actual lbs. of brass used during the week 10,197 lbs. Number of units produced during the week 6,600 Actual wage per hour $16.07 Actual hours for the week (30 employees × 40 hours) 1,200 Required: a. Determine the standard cost per unit for direct materials and direct labor. Round the cost per unit to two decimal places. Line Item Description Cost per Unit Direct materials standard cost per unit $fill in the blank 1 Direct labor standard cost…