**Educational Website Content: Analysis of Variance in Manufacturing Costs**---**Huron Company's Cost Standards for Producing Zoom**Huron Company produces a commercial cleaning compound named Zoom. The following table outlines the standard direct materials and labor standards required for producing one unit of Zoom:| Resource | Standard Quantity | Standard Price or Rate | Standard Cost ||----------------|-------------------|------------------------|---------------|| Direct Materials| 6.8 pounds | $2.90 per pound | $19.72 || Direct Labor | 0.26 hours | $9.00 per hour | $2.34 |**Total Standard Cost per Unit: $22.06**---**Recent Month's Recorded Activity:**- **Materials Usage:** - A total of 15,100.00 pounds of material were purchased at a cost of $2.60 per pound. - All purchased material was used to produce 2,000 units of Zoom.- **Labor Usage:** - 300 hours of direct labor time were recorded, with a total labor cost of $3,300.---**Required Analysis:**1. **Materials Price and Quantity Variances:** - Analyze the variances in the cost of materials by comparing the actual costs with standard costs. 2. **Labor Rate and Efficiency Variances:** - Evaluate labor cost variances by comparing actual labor costs against standard benchmarks.**Variance Explanation:**- **Materials Price Variance:** Reflects the difference between the actual and standard purchase price.- **Materials Quantity Variance:** Captures the variance in the amount of materials used vs. expected.- **Labor Rate Variance:** Indicates the variance in actual labor rate against the standard rate.- **Labor Efficiency Variance:** Compares the actual labor hours used to the standard hours expected for the production level.**Results Recording:**- Enter each variance result, noting whether the variance is Favorable (F), Unfavorable (U), or None.- Input all results as positive values and round calculations to the nearest whole dollar.| 1. Materials Price Variance | || 2. Materials Quantity Variance | || 1. Labor Rate Variance | || 2. Labor Efficiency Variance | |This detailed variance analysis assists in understanding production performance and cost management within Huron Company.--- **Conclusion

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Description: **Educational Website Content: Analysis of Variance in Manufacturing Costs**---**Huron Company's Cost Standards for Producing Zoom**Huron Company produces a commercial cleaning compound named Zoom. The following table outlines the standard direct ma

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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 6.80 pounds 0.20 hours Standard Price or Rate $2.90 per pound $9.00 per hour Standard Cost $ 19.72 $1.00 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 15,100.00 pounds of material were purchased at a cost of $260 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 300 hours of direct labor time were recorded at a total labor cost of $3,300.

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 6.80 pounds 0.20 hours Standard Price or Rate $2.90 per pound $9.00 per hour Standard Cost $ 19.72 $1.00 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 15,100.00 pounds of material were purchased at a cost of $260 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 300 hours of direct labor time were recorded at a total labor cost of $3,300.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Huron Company produces a 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 7.10 pounds 0.20 hours Standard Price or Rate $ 1.80 per pound $ 12.00 per hour During the most recent month, the following activity was recorded: a. 19,250.00 pounds of material were purchased at a cost of $1.70 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 400 hours of direct labor time were recorded at a total labor cost of $5,200. Required: 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Standard Cost $ 12.78 $ 2.40 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no…
M Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Quantity or Hours 6.00 pounds 0.50 hours During the most recent month, the following activity was recorded: a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound. b. All of the material purchased was used to produce 3.000 units of Zoom c1,400 hours of direct labor time were recorded at a total labor cost of $18.200 Required: 1. Compute the materials price and quantity variances for the month, 2. Compute the labor rate and efficiency variances for the month. Note: For all requirements, Indicate the effect of ench 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. Direct materials Direct labor 1. Materials price vanance 1. Materials quantity variance 2.…
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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…
Arrow Enterprises uses a standard costing system. The standard cost sheet for product no. 549 follows: Direct materials: 4 units @ $6.50 $26.00 Direct Labor: 8 hours @ $8.50 68 Variable factory overhead: 8 hours @ $7.00 56 Fixed factory overhead: 8 hours @ $25 20 Total standard cost per unit $170,000 The following information pertains to activity for December: 1. Direct materials acquired during the month amounted to 26,350 units at $6.40 per unit. All materials were consumed in operations. 2. Arrow incurred an average wage rate of $8.75 for 51,400 hours of activity. 3. Total overhead incurred amounted to $508,400. Budgeted fixed overhead totals $1.8 million and is spread evenly throughout the year. 4. Actual production amounted to 6,500 completed units. Compute Arrow's direct labor variances.
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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 Standard Price or Rate Standard Cost Direct materials 7.90 pounds $ 2.10 per pound $ 16.59 Direct labor 0.50 hours $ 5.00 per hour $ 2.50 During the most recent month, the following activity was recorded: Fourteen thousand eight hundred and fifity pounds of material were purchased at a cost of $2.00 per pound. All of the material purchased was used to produce 1,500 units of Zoom. 600 hours of direct labor time were recorded at a total labor cost of $4,200. 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).