Huron Company produces a commercial cleaning compound known as Zoom. The directmaterials and direct labor standards for one unit of Zoom are given below:StandardStandard PriceStandardQuantity orHoursor RateCostDirect6.1 pounds $2.50 per pound $15.25$9.50 per hourmaterialsDirect labor 0.5 hours$ 4.75During the most recent month, the following activity was recorded:Eleven thousand eight hundred pounds of material were purchased at a cost of $2.40a.per pound.b. The company produced only 1,180 units, using 10,620 pounds of material. (The rest ofthe material purchased remained in raw materials inventory.)Six hundred and ninety hours of direct labor time were recorded at a total labor costof $8,280.Required:Compute the materials price and quantity variances for the month. (Indicate the effect ofeach variance by selecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance). Do not round intermediate calculations.)Direct materials price varianceDirect materials quantity variance

Direct material price variance = (Standard Price - Actual Price) x Actual Quantity of…

Answered: Huron Company produces a commercial…

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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Chenango Industries uses 12 units of part JR63 each month in the production of radar equipment. The cost of manufacturing one unit of JR63 is the following: 5 4,000 Direct naterial Material handling (20x of direct-naterial cost) Direct labor Manufarturing overhead (150% of direct labor) 39,000 S8,500 Total manufacturing cost $102, 300 Material handling represents the direct variable costs of the Recelving Department that are applied to direct materials and purchased components on the basis of their cost. This is a separate charge in addition to manufacturing overhead. Chenango Industries' annual manufacturing overhead budget is one-third variable and two thirds fixed. Scott Supply, one of Chenango Industries' reliable vendors. has offered to supply part number JR63 at a unit price of $64,000.
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 7.10 pounds 0.20 hours Standard Price or Rate $ 1.80 per pound $ 12.00 per hour During the most recent month, the following activity was recorded: a. 19,250.00 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. Required: 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Standard Cost $ 12.78 $ 2.40 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…
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 4.6 pounds 0.2 hours 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 Price or Materials price variance Materials quantity variance 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 values.) Answer is complete but…
The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate $ 0.26 per millilitre $12.00 per hour Standard Cost $1.82 $4.80 During the most recent month, the following activity was recorded: a. 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) Materials price variance Materials quantity variance 2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each varlance by selecting "F" for…
Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.35 per micron Direct labor: 1.5 hours per toy at $6.80 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Direct materials: 76,000 microns were purchased at a cost of $0.32 per micron. 31,375 of these microns were still in inventory at the end of the month. Direct labor. 8,050 direct labor-hours were worked at a cost of $58,765. Required: 1. Compute the following variances for July: 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. Round final answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances.
Denger
Linis Company produces a commercial cleaning compound known as Zide. The direct materials and direct labor standards for one unit of Zide are as follows: Standard Qty Standard Price Standard Cost 4.6 lbs P 11.50 7.00 Direct Materials P2.5/lb Direct Labor 0.2 hr 35/ hr During the most recent month, the following activity was recorded: [a] Twenty thousand pounds of material were purchased at a cost of P2.35 per pound. [b] All of the materials purchased was used to produce 4,000 units of Zide. [c] 750 hours of direct labor time were recorded at a total labor cost of P30,375. Compute for the direct labor efficiency variance. Indicate whether favorable or unfavorable.
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 5.70 pounds $ 2.50 per pound $ 14.25 Direct labor 0.50 hours $ 7.50 per hour $ 3.75 During the most recent month, the following activity was recorded: Eleven thousand pounds of material were purchased at a cost of $2.40 per pound. The company produced only 1,100 units, using 9,900 pounds of material. (The rest of the material purchased remained in raw materials inventory.) 650 hours of direct labor time were recorded at a total labor cost of $7,800. Required: Compute the materials price and quantity variances for the month.
During May, Joliet Fabrics Corporation manufactured 520 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,200 yards at $1.40 per yard Direct material used: 9,700 yards at $1.40 per yard Direct labor: 2,300 hours at $9.17 per hour The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.37 per yard Direct labor: 3 hours at $7.00 per hour Total standard prime cost per unit of output Required: Compute the following variances for the month of May. $ 27.40 21.00 $ 48.40 $ 25,480 13,580 21,091 Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance
Please help me in all three subparts thanks
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 Standard Price or Rate Standard Cost Direct materials 7.90 pounds $ 2.10 per pound $ 16.59 Direct labor 0.50 hours $ 5.00 per hour $ 2.50 During the most recent month, the following activity was recorded: Fourteen thousand eight hundred and fifity pounds of material were purchased at a cost of $2.00 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 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).
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (14 pounds @ $5 per pound) $ 70 Direct labor (2 hours @ $14 per hour) 28 During June the company incurred the following actual costs to produce 8,800 units. Direct materials (125,300 pounds @ $4.75 per pound) $ 595,175 Direct labor (22,300 hours @ $14.15 per hour) 315,545 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.

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