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 6.30 pounds 0.50 hours Standard Price or Rate $ 2.50 per pound $10.50 per hour Standard Cost $15.75 $5.25 During the most recent month, the following activity was recorded a. Twelve thousand two hundred pounds of material were purchased at a cost of $240 per pound b. The company produced only 1,220 units, using 10,980 pounds of material. (The rest of the material purchased remained in raw materials Inventory) c. 710 hours of direct labor time were recorded at a total labor cost of $8,520 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 (.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.)

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 6.30 pounds 0.50 hours Standard Price or Rate $ 2.50 per pound $10.50 per hour Standard Cost $15.75 $5.25 During the most recent month, the following activity was recorded a. Twelve thousand two hundred pounds of material were purchased at a cost of $240 per pound b. The company produced only 1,220 units, using 10,980 pounds of material. (The rest of the material purchased remained in raw materials Inventory) c. 710 hours of direct labor time were recorded at a total labor cost of $8,520 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 (.e., zero variance). Input all amounts as positive values. Do not round Intermediate calculations.)

Name: Exercise 10-7 (Algo) Direct Materials Variances [LO10-1]Huron Company
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Description: Exercise 10-7 (Algo) Direct Materials Variances [LO10-1]Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below.Direct materialsDirect laborStandard Qua

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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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 7.80 pounds 0.30 hours Standard Price or Rate $ 2.30 per pound $ 8.00 per hour During the most recent month, the following activity was recorded: a. 25,900.00 pounds of material were purchased at a cost of $2.10 per pound b. All of the material purchased was used to produce 3,000 units of Zoom c. 700 hours of direct labor time were recorded at a total labor cost of $6,300 Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month 1. Materials price variance 1. Materials quantity variance 2 Labor rate variance 2 Labor efficiency variance Standard Cast $17.94 $2.40 Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for…