Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below:StandardQuantity orStandard Price or Rate Standard CostDirect materialsDirect laborHours4.6 pounds$ 2.50 per pound8.2 hours$ 18.00 per hour$ 11.50$ 3.60During 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. 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 $14,925.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 noeffect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)1. Materials price variance1. Materials quantity variance2. Labor rate variance2. Labor efficiency variance

Answer - 1Step 1: Computation of the material price and quantity variances:Materials price…

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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M Huron 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 6.00 pounds 0.50 hours During the most recent month, the following activity was recorded: a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound. b. All of the material purchased was used to produce 3.000 units of Zoom c1,400 hours of direct labor time were recorded at a total labor cost of $18.200 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 ench 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. Direct materials Direct labor 1. Materials price vanance 1. Materials quantity variance 2.…

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