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 Standard Price Standard or Rate $2.30 per pound Hours Cost Direct materials 7.40 pounds $17.02 Direct labor 0.90 hours $8.50 per hour $ 7.65 During the most recent month, the following activity was recorded: a. 21,500.00 pounds of material were purchased at a cost of $2.10 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 2,000 hours of direct labor time were recorded at a total labor cost of $21,000. 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.)

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 Standard Price Standard or Rate $2.30 per pound Hours Cost Direct materials 7.40 pounds $17.02 Direct labor 0.90 hours $8.50 per hour $ 7.65 During the most recent month, the following activity was recorded: a. 21,500.00 pounds of material were purchased at a cost of $2.10 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 2,000 hours of direct labor time were recorded at a total labor cost of $21,000. 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.)

Name: Huron Company produces a commercial cleaning compound known as Zoom.
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 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 | Standard Price or Rate | Standard Cost ||---------------------

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

G Company manufactures two products: Product S and Product T. During January, 50 units of Product S and 300 units of Product T wee produced. And overhead costs of P81,000 were incurred. An analysis of overhead costs reveals the following activities: Activity Cost Driver Total cost 1. Material handling Number of requisitions P30,000 2. Machine setups Number of setups 27,000 3. Quality inspections Number of inspections 24,000 The cost drive volume for each product was as follows: Cost driver Product S Product T Number of requisitions 400 600 Number of setups 150 300 Number of inspections 200 400 Required: 1. Determine the overhead rate for each activity. 2. Allocate the manufacturing overhead costs to the two products using Activity Based Costing (ABC).
R Ltd. produces a product with the following costs as of July 1, 20XX: Material Labour Overhead $5 per unit 7 per unit 5 per unit Assuming R sold 26,000 units during the last six months of the year at $22 each, beginning inventory at these costs on July 1 was 8,000 units. From July 1 to December 31, 20XY, R produced 20,000 units. These units had a material cost of $6 per unit. The costs for labour and overhead were the same. a. If R uses FIFO inventory accounting, what would be the gross profit for the period? Gross profit b. If R uses FIFO inventory accounting, What is the value of ending inventory? Ending inventory
Subject: acounting
Lucia Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (16 pounds @ $3 per pound) $ 48 Direct labor (3 hours @ $15 per hour) 45 During May the company incurred the following actual costs to produce 8,100 units. Direct materials (133,600 pounds @ $2.80 per pound) $ 374,080 Direct labor (29,200 hours @ $15.10 per hour) 440,920 AR = Actual RateSR = Standard RateAQ = Actual QuantitySQ = Standard QuantityAP = Actual PriceSP = Standard Price(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate variance and the direct labor efficiency variance.
Camila Company has set the following standard cost per unit for direct materials and direct labor. Direct materials (15 pounds @ $4 per pound) Direct labor (3 hours @ $14 per hour) During June the company incurred the following actual costs to produce 8,700 units. Direct materials (133,500 pounds @ $3.70 per pound) $493,950 416,060 Direct labor (29,300 hours @ $14.20 per hour) AR = Actual Rate SR = Standard Rate AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price $60 42 (1) Compute the direct materials price and quantity variances. (2) Compute the direct labor rate variance and the direct labor efficiency variance.
A VACUUM MANAUFACTUER HAS PREPARED THE FOLLOWING HAS THE FOLLOWING COST DATA FOR MANUFACTURING ONE OF ITS ENGINE COMPONENTS BASED ON THE ANNUAL PRODUCTION OF 50,000 UNITS DIRECT MATERIALS $75,000 DIRECT LABOR $100,000 TOTAL $175,000 IN ADDITION, VARIABLE FACTORY OVERHEAD IS APPLIED AT $7.50 PER UNIT.
Garrison Manufacturing has the following standard cost sheet for one of its products: direct materials (5m @ $6) $30 Direct labour (1.5 hours @$ 10) 15 variable overhead ( 1 hour @ $7) 7 Fixed overhead (2 hours @ $3) 6 Standard unit cost $58 *Rate based on expected activity of 12,000 hours. During the most recent year, the following actual results were recorded: production 13,000 units fixed overhead $36,000 Variable overhead $60,000 Direct materials (62,500m purchased) $382,500 direct labour (15,900 hours)…
Assume the following information appears in the standard cost card for a company that makes only one product: Standard Quantity or Hours Standard Price or Rate Standard Cost Direct materials 5 pounds $ 11.00 per pound $ 55.00 Direct labor 2 hours $ 17.00 per hour $ 34.00 Variable manufacturing overhead 2 hours $ 3.00 per hour $ 6.00 During the most recent period, the following additional information was available: 20,000 pounds of material was purchased at a cost of $10.50 per pound. All of the material that was purchased was used to produce 3,900 units. 8,000 direct labor-hours were recorded at a total cost of $132,000. The actual variable overhead cost incurred during the period was $25,050. Assuming the company uses direct labor-hours to compute its predetermined overhead rate, what is the variable overhead rate variance? Multiple Choice $1,650 F $1,650 U $1,050 U $1,050 F
Godo
Subject: acounting
Only typed solution
The Homer Corporation produces two products, and reports the following production and cost information for the most recent accounting period. Product A Product B Number of units produced 20,000 units 4,000 units Direct labor @ $20 per direct labor hour (DLH) 0.50 DLH per unit 2.00 DLH per unit Direct materials cost $ 4 per unit $ 35 per unit Overhead costs: Total Cost ActivityDriver Product A Product B Machine setup $ 2,000.00 setups 6 setups 14 setups Quality inspections 31,000.00 inspections 80 inspections 120 inspections Total $ 33,000.00 Using activity-based costing to assign overhead costs, the activity rate for machine setups is: