Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5) 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 6.80 pounds 8.20 hours During the most recent month, the following activity was recorded: Direct materials Direct labor Standard Price or Rate $ 2.90 per pound $9.00 per hour Standard Cost $ 19.72 $ 1.80 a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound b. All of the material purchased was used to produce 2.000 units of Zoom c. 300 hours of direct labor time were recorded at a total labor cost of $3.300. 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 (.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)
Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5) 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 6.80 pounds 8.20 hours During the most recent month, the following activity was recorded: Direct materials Direct labor Standard Price or Rate $ 2.90 per pound $9.00 per hour Standard Cost $ 19.72 $ 1.80 a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound b. All of the material purchased was used to produce 2.000 units of Zoom c. 300 hours of direct labor time were recorded at a total labor cost of $3.300. 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 (.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances (LO9-4, LO9-5]
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
6.80 pounds
0.20 hours
Direct materials
Direct labor
During the most recent month, the following
Standard Price or
Rate
$ 2.90 per pound
$9.00 per hour
activity was recorded:
Standard
Cost
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
2. Labor efficiency variance
$ 19.72
$ 1.80
a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound.
b. All of the material purchased was used to produce 2.000 units of Zoom.
c. 300 hours of direct labor time were recorded at a total labor cost of $3.300.
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). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0abe4bca-4b47-4069-a528-285c0320eefb%2F3297acdb-e178-4595-b6f7-87fc48a9f72d%2Fld6hga4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:10
Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances (LO9-4, LO9-5]
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
6.80 pounds
0.20 hours
Direct materials
Direct labor
During the most recent month, the following
Standard Price or
Rate
$ 2.90 per pound
$9.00 per hour
activity was recorded:
Standard
Cost
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
2. Labor efficiency variance
$ 19.72
$ 1.80
a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound.
b. All of the material purchased was used to produce 2.000 units of Zoom.
c. 300 hours of direct labor time were recorded at a total labor cost of $3.300.
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). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar)
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