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 Standard Price or Rate Standard Cost $ 12.35 $ 3.90 6.50 pounds 0.30 hours $ 1.90 per pound $ 13.00 per hour During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $12,000. 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"

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 Standard Price or Rate Standard Cost $ 12.35 $ 3.90 6.50 pounds 0.30 hours $ 1.90 per pound $ 13.00 per hour During the most recent month, the following activity was recorded: a. 20,500.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 3,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $12,000. 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"

Name: Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO1
Uploaded: 2024-03-20T06:33:06.000Z
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Description: Exercise 10-6 (Algo) Direct Materials and Direct Labor Variances [LO10-1, LO10-2]Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoomare given below:Direct materialsDirect lab

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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