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 Rate 4.6 pounds 0.2 hours $ 2.50 per pound $ 18.00 per hour. During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Direct materials Direct labor Standard Price or 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 (i.e., zero variance). Input all amounts as positive values.) Answer is complete but not entirely correct. S 3,000 F $ 4,000 U Materials price variance Materials quantity variance Standard Cost $ 11.50 $ 3.60 19

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 Rate 4.6 pounds 0.2 hours $ 2.50 per pound $ 18.00 per hour. During the most recent month, the following activity was recorded: a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. b. The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $14,925. Direct materials Direct labor Standard Price or 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 (i.e., zero variance). Input all amounts as positive values.) Answer is complete but not entirely correct. S 3,000 F $ 4,000 U Materials price variance Materials quantity variance Standard Cost $ 11.50 $ 3.60 19

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

Nobel Ltd is a wool coat manufacturer. It produced 80 units in September. The following cost information is available:• Wool fabric: $150 per unit• Depreciation of production equipment: $3,000 per month• Research and development: $1,000 per month• Wages of staff involved in cutting, sewing and finishing: $30 per unit• Designers' salary: $23,000 per month• Advertising costs: $900 per month• Indirect material: $40 per unit• Salary of factory supervisor: $16,000 per month What is the total prime costs for Nobel Ltd in September? a. 14,400 b. 12,000 c. 24,600 d. 22,200
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 Standard Price or Rate 6.90 pounds $ 2.60 per pound 0.30 hours $ 7.00 per hour Standard Cost $ 17.94 $ 2.10 During the most recent month, the following activity was recorded: a. Nineteen thousand two hundred and fifity pounds of material were purchased at a cost of $2.40 per pound. b. All of the material purchased was used to produce 2,500 units of Zoom. c. 450 hours of direct labor time were recorded at a total labor cost of $4,500. 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…
BrightWater, LLP uses a standard costing system to collect costs related to the production of its mineral-infused water. The direct labor standard for each unit is 1.25 hours at a standard cost of $11.00 per hour. During the month of November, BrightWater’s unit production used 9,820 direct labor hours at a total direct labor cost of $106,547. This resulted in production of 8,500 units for November. What is BrightWater’s labor efficiency variance for November? Select one: a. $10,328 favorable. b. $13,047 unfavorable. c. $8,855 favorable. d. $14,520 unfavorable. e. Unable to calculate from the information given.
Jean Corporation uses a standard cost system and has the following standard costs for direct materials and direct labor. Direct materials: 2.5 meters @ P14 per meter DIrect Labor: 1.6 hours @ P8 per hour P35.00 P12.80 During the month of February, 15,000 units were produced. The costs related to the production of the product were as follows: 50,000 meters of materials were purchased at a cost of P13.80 per meter. 40,000 meters of materials were used. 25,000 direct labor hours were used at a cost of P8.60 per hour. Prepare the journal entries to record the purchased of materials, used of materials and labor incurrence.
Richards Company manufactures small plastic widgets. The standard direct materials quantity required to produce one widget is 1/2 pound at a cost of $9 per pound. Every widget requires 7 direct labor hours at a standard cost of $19 per direct labor hour. During November, 1,500 widgets were produced using 770 pounds of materials costing $3,120. At the end of November, an examination of the labor cost records showed that the company used 10,400 direct labor hours (DLHr) at a cost of $18 per hour. What is the direct labor efficiency variance? $1,900 F B. $1,900 U C. $10,400 F D. $10,400 U
The company makes 420 units of product YBY a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit According to the activity-based costing system, the average cost of product YBY is closest to a. per unit $ 94.26 b. per unit $93.99 c. per unit $ 94.00 d.None of the given answer is correct e. per unit $ 95.77
Zippy Inc. manufactures a fuel additive, Surge, which has a stable selling price of $44 per drum. The company has been producing and selling 80,000 drums per month. In connection with your examination of Zippy's financial statements for the year ended September 30, management has asked you to review some computations made by Zippy's cost accountant. Your working papers disclose the following about the company's operations: Standard costs per drum of product manufactured: Materials: 8 gallons of chemicals @ $2. $16 1 empty drum. $17 Direct labor-1 hour. $10 Factory Overhead. $ 6 Costs and expenses during September: Chemicals: 645,000 gallons purchased at a cost of $1,140,000; 600,000 gallons used. Empty drums: 94,000 purchased at a cost of $94,000; 80,000 drums used. Direct labor: 81,000 hours worked at a cost of $816,480. Factory overhead: $768,000. REQUIRED: Calculate the following for September, using the formulas in Determination of Variances on pages 421–422 and 424 (Round unit…
Sharp Company manufactures a product for which the following standards have been set: Standard Standard Quantity Standard Price or or Hours Rate Cost $15 3 feet hours $5 per foot ? per hour ? ? Direct materials Direct labor During March, the company purchased direct materials at a cost of $54,630, all of which were used in the production of 2,875 units of product. In addition, 4,700 direct labor-hours were worked on the product during the month. The cost of this labor time was $47,000. The following variances have been computed for the month: Materials quantity variance Labor spending variance Labor efficiency variance Required: 1. For direct materials: a. Compute the actual cost per foot of materials for March. b. Compute the price variance and the spending variance. 2. For direct labor: a. Compute the standard direct labor rate per hour. b. Compute the standard hours allowed for the month's production. c. Compute the standard hours allowed per unit of product. $ 2,400 U $ 3,300 U $…
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. 11,000.00 pounds of material were purchased at a cost of $2.10 per pound b. All of the material purchased was used to produce 1,500 units of Zoom. c. 500 hours of direct labor time were recorded at a total labor cost of $6,500. Required: Direct materials Direct labor 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 Price or Rate Standard Cost $ 2.30 per pound $10.00 per hour Note: For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e.,…
Sheridan Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product. Direct materials (8 pounds at $3.30 per pound) Direct labor (1 hours at $12.00 per hour) $26.40 $12.00 During the month of April, the company manufactures 240 units and incurs the following actual costs. Direct materials purchased and used (2,300 pounds) $8,050 Direct labor (280 hours) $3,304 Compute the total, price, and quantity variances for materials and labor. Total materials variance $ Materials price variance $ Search
Hardev
Dawson Toys, Limited, produces a toy called the Maze with the following standards: Direct materials: 7 microns per toy at $0.30 per micron Direct labor: 1.2 hours per toy at $7.30 per hour During July, the company produced 5,100 Maze toys. The toy's production data for the month are as follows: Direct materials. 74,000 microns were purchased at a cost of $0.29 per micron. 29,375 of these microns were still in inventory at the end of the month. Direct labor. 6,720 direct labor-hours were worked at a cost of $53,088. Required: 1. Compute the following variances for July: Note: 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. Do not round intermediate calculations. Round final answer to the nearest whole dollar amount. a. The materials price and quantity variances. b. The labor rate and efficiency variances. 1a. Material price variance 1a. Material quantity…