Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for on unit of Zoom are given below: Standard Quantity or Direct materials Direct labor Hours 5.40 pounds 0.40 hours Standard Price or Rate Standard Cost $3.00 per pound $0.00 per hour $ 16.20 $2.40 During the most recent month, the following activity was recorded a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory) c. 516 hours of direct labor time were recorded at a total tabor cost of $6.192. Required: Compute the materials price and quantity variances for the month (Indicete the effect of each veriance by selecting F for favorable, "U" for unfavorable, and "None" for no effect (ie, zero veriance). Input all amounts as positive velues. Do not round intermediate calculations.) Materials price variance Materials quantity variance
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for on unit of Zoom are given below: Standard Quantity or Direct materials Direct labor Hours 5.40 pounds 0.40 hours Standard Price or Rate Standard Cost $3.00 per pound $0.00 per hour $ 16.20 $2.40 During the most recent month, the following activity was recorded a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory) c. 516 hours of direct labor time were recorded at a total tabor cost of $6.192. Required: Compute the materials price and quantity variances for the month (Indicete the effect of each veriance by selecting F for favorable, "U" for unfavorable, and "None" for no effect (ie, zero veriance). Input all amounts as positive velues. Do not round intermediate calculations.) Materials price variance Materials quantity variance
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter9: Profit Planning And Flexible Budgets
Section: Chapter Questions
Problem 64E: Use the following information for Exercises 9-63 and 9-64: Palladium Inc. produces a variety of...
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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