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 6.40 pounds 0.40 hours During the most recent month, the following activity was recorded: Direct materials Direct labor a. 18,500.00 pounds of material were purchased at a cost of $1.40 per pound. b. All of the material purchased was used to produce 2.500 units of Zoom c 800 hours of direct labor time were recorded at a total labor cost of $13.600. Required: 1 Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Standard Price or Rate $1.70 per pound $14.00 per hour (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.) Answer is complete but not entirely correct. $ 5,550 $ (4,250) U ✔ $ 2,400 $ 680 1. Materials price variance 1. Materials quantity variance 2 Labor rate variance. 2 Labor efficiency variance None * F ♡ Standard Cost $10.88 $5.60

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 6.40 pounds 0.40 hours During the most recent month, the following activity was recorded: Direct materials Direct labor a. 18,500.00 pounds of material were purchased at a cost of $1.40 per pound. b. All of the material purchased was used to produce 2.500 units of Zoom c 800 hours of direct labor time were recorded at a total labor cost of $13.600. Required: 1 Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Standard Price or Rate $1.70 per pound $14.00 per hour (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.) Answer is complete but not entirely correct. $ 5,550 $ (4,250) U ✔ $ 2,400 $ 680 1. Materials price variance 1. Materials quantity variance 2 Labor rate variance. 2 Labor efficiency variance None * F ♡ Standard Cost $10.88 $5.60

Name: Huron Company produces a commercial cleaning compound known as Zoom.
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Description: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below:Standard Quantity orHours6.40 pounds0.40 hoursDuring the most recent month, the following activi

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Problem 1Q

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