### Analyzing Direct Material and Direct Labor Standards for Huron CompanyHuron 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 | Standard Price or Rate | Standard Cost ||----------------------------|------------------------|--------------------|| Direct materials: 7.50 pounds | $2.40 per pound | $18.00 || Direct labor: 0.80 hours | $7.00 per hour | $5.60 |#### Recent Production ActivityDuring the most recent month, the following activity was recorded:a. 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 1,000 hours of direct labor time were recorded at a total labor cost of $9,000.#### Requirements1. **Calculate the Materials Price and Quantity Variances for the Month.**2. **Calculate the Labor Rate and Efficiency Variances for the Month.**3. 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.| Variance Type | Calculation Details ||---------------------------------|---------------------|| 1. Materials price variance | || 1. Materials quantity variance | || 2. Labor rate variance | || 2. Labor efficiency variance | |**Note**: This document outlines basic information and requirements for determining variances in direct materials and labor, providing insights into cost management and efficiency for the company's production standards.For more in-depth studies and additional problem sets, please refer to the relevant chapters in your educational materials or contact your instructor.

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Description: ### Analyzing Direct Material and Direct Labor Standards for Huron CompanyHuron 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 o

The individual parts of a product are referred to as direct materials. Direct materials for a baker,…

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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. 7.50 pounds 0.80 hours Standard Cost Direct materials Standard Price or Rate $ 2.40 per pound $7.00 per hour Direct labor $ 18.00 $5.60 During the most recent month, the following activity was recorded: a. 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 1,000 hours of direct labor time were recorded at a total labor cost of $9,000. 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.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency 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: Standard Quantity or Hours. 7.50 pounds 0.80 hours Standard Cost Direct materials Standard Price or Rate $ 2.40 per pound $7.00 per hour Direct labor $ 18.00 $5.60 During the most recent month, the following activity was recorded: a. 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased was used to produce 1,500 units of Zoom. c. 1,000 hours of direct labor time were recorded at a total labor cost of $9,000. 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.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance

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The direct materials and direct labour standards for one bottle of Clean-All spray cleaner are given below: Standard Quantity or Hours Direct materials Direct labour 7.0 millilitres 0.4 hours Standard Price or Rate $ 0.26 per millilitre $12.00 per hour Standard Cost $1.82 $4.80 During the most recent month, the following activity was recorded: a. 25,000 millilitres of material was purchased at a cost of $0.21 per millilitre. b. All of the material was used to produce 3,000 bottles of Clean-All. c. 750 hours of direct labour time was recorded at a total labour cost of $9,000. Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each varlance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (l.e., zero variance).) Materials price variance Materials quantity variance 2. Compute the direct labour rate and efficiency variances for the month. (Indicate the effect of each varlance by selecting "F" for…
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Erie Company manufactures a mobile fitness device called the Jogging Mate. The company's labor standards for one Jogging Mate are as follows: Standard Standard Rate Hours 30 minutes per Hour $ 5.60 Standard Cost $ 2.80 During August, 10,660 hours of direct labor time were needed to make 19,900 units of the Jogging Mate. The direct labor cost totaled $58,630 for the month. Required: 1. What is the standard labor-hours allowed (SH) to makes 19,900 Jogging Mates? 2. What is the standard labor cost allowed (SH x SR) to make 19,900 Jogging Mates? 3. What is the labor spending variance? 4. What are the labor rate variance and the labor efficiency variance? 5. The budgeted variable manufacturing overhead rate is $4.30 per direct labor-hour. During August, the company incurred $51,168 in variable manufacturing overhead cost. Compute the variable overhead rate and efficiency variances for the month. Note: For requirements 3 through 5, indicate the effect of each variance by selecting "F" for…
ces of The standard cost card for a unit of Product AX at the Cleaning Chemicals Corp. shows the following standard cost information: Materials: 3 gallons at $3 per gallon Labor: 2 hours at $12 per hour Overhead: 80% of direct labor Total $9 24 19 $ 52 During the month of October 20X1, Job O-3 was completed. It was the only job worked on during October. Five thousand two hundred units were produced from the job. The actual costs were as shown below: Materials: 15,800 gallons at $3.10 per gallon Labor: 10,500 hours at $12.10 per hour Actual overhead Total Standard cost of materials Actual cost of materials Total variance for materials $ 48,980 127,050 101,640 $277,670 Required: Calculate the total variance for materials for the month. (Indicate the effect of the variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance).)
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During May, Joliet Fabrics Corporation manufactured 520 units of a special multilayer fabric with the trade name Stylex. The following information from the Stylex production department also pertains to May. Direct material purchased: 18,200 yards at $1.40 per yard Direct material used: 9,700 yards at $1.40 per yard Direct labor: 2,300 hours at $9.17 per hour The standard prime costs for one unit of Stylex are as follows: Direct material: 20 yards at $1.37 per yard Direct labor: 3 hours at $7.00 per hour Total standard prime cost per unit of output Required: Compute the following variances for the month of May. $ 27.40 21.00 $ 48.40 $ 25,480 13,580 21,091 Note: Indicate the effect of each variance by selecting "Favorable" or "Unfavorable". Select "None" and enter "O" for no effect (i.e., zero variance). 1. Direct-material price variance 2. Direct-material quantity variance 3. Direct-material purchase price variance 4. Direct-labor rate variance 5. Direct-labor efficiency variance
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