### 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.

Name: ### Analyzing Direct Material and Direct Labor Standards for Huron Co
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
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,…

Business

Accounting

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

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 69P: (Appendix 3A) Separating Fixed and Variable Costs, Service Setting Louise McDermott, controller for...

See similar textbooks