Haresh vala Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2]Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below.Standard Quantity orHours6.90 pounds0.30 hoursDuring the most recent month, the following activity was recorded:a. 19,250.00 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. Computhe materials price and quantity variances for the month.2. Compute the labor rate and efficiency variances for the month..Note: 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 nearestwhole dollar.Direct materials.Direct labor1. Materials price variance1 Materials quantity variance2. Labor rate variance2 Labor efficiency variance$3,850 FUUStandard Price or Rate$2.60 per pound$7.00 per hourStandard Cost$17.94$ 2.10

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Description: Haresh vala Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2]Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below.Stan

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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 6.90 pounds 0.30 hours During the most recent month, the following activity was recorded: a. 19,250.00 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. Note: 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. Direct materials Direct labor 1. Materials price variance 1 Materials quantity variance 2. Labor rale variance 2 Labor efficiency variance 5, 3,850 U U Standard Price or Rate $ 2.60 per pound $7.00 per hour Standard Cost $17.94 $ 2.10

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 6.90 pounds 0.30 hours During the most recent month, the following activity was recorded: a. 19,250.00 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. Note: 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. Direct materials Direct labor 1. Materials price variance 1 Materials quantity variance 2. Labor rale variance 2 Labor efficiency variance 5, 3,850 U U Standard Price or Rate $ 2.60 per pound $7.00 per hour Standard Cost $17.94 $ 2.10

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 20E: Jameson Company produces paper towels. The company has established the following direct materials...

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