Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below:Direct materialsDirect laborStandardQuantity orHours7.80 pounds0.30 hoursDuring the most recent month, the following activity was recorded:Standard Price or Rate Standard Cost$ 2.50 per pound$6.00 per houra. 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 variance1. Materials quantity variance2 Labor rate variance2 Labor efficiency variance$19.50$ 1.80(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e.. zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)

DIRECT MATERIALS COST VARIANCEDirect materials cost variance is the difference between the actual…

Answered: Huron Company produces a commercial c…

Business

Accounting

Huron Company produces a commercial c unit of Zoom are given below: Standard Quantity or Hours

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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, and "None" for no
effect (i.e.. zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)

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Step 1: Introduce Material & Labour Variance

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Step 2: Direct Material Price Variance

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Step 3: Direct Material Quantity Variance

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Step 4: Labour Rate Variance

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Step 5: Labour Efficiency Variance

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