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 6.10 pounds 0.50 hours Standard Price or Rate $ 2.50 per pound $9.50 per hour Standard Cost $ 15.25 $ 4.75 During the most recent month, the following activity was recorded: a. Eleven thousand eight hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,180 units, using 10,620 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 690 hours of direct labor time were recorded at a total labor cost of $8,280. 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. 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 one unit of Zoom are given below: Direct materials Direct labor Standard Quantity or Hours 6.10 pounds 0.50 hours Standard Price or Rate $ 2.50 per pound $9.50 per hour Standard Cost $ 15.25 $ 4.75 During the most recent month, the following activity was recorded: a. Eleven thousand eight hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,180 units, using 10,620 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 690 hours of direct labor time were recorded at a total labor cost of $8,280. 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. Do not round intermediate calculations.) Materials price variance Materials quantity variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
6.10 pounds
0.50 hours
Standard Price or Rate
$ 2.50 per pound
$9.50 per hour
Standard
Cost
$ 15.25
$ 4.75
During the most recent month, the following activity was recorded:
a. Eleven thousand eight hundred pounds of material were purchased at a cost of $2.40 per pound.
b. The company produced only 1,180 units, using 10,620 pounds of material. (The rest of the material purchased remained in raw
materials inventory.)
c. 690 hours of direct labor time were recorded at a total labor cost of $8,280.
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. Do not round
intermediate calculations.)
Materials price variance
Materials quantity variance
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