Introduction To Managerial Accounting
8th Edition
ISBN: 9781259917066
Author: BREWER, Peter C., Garrison, Ray H., Noreen, Eric W.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 9, Problem 13E
Direct Materials and Direct Labor Variances
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:
During the most recent month, the following activity was recorded:
a. Twenty thousand pounds of material were purchased at a cost of S2.35 per pound.
b. All of the material purchased was used to produce 4.000 units of Zoom.
c. 750 hours of direct labor time were recorded at a total labor cost of S14.925.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
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Introduction To Managerial Accounting
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What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY