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 Price or Rate Standard Cost$ 2.90 per pound$ 10.00 per hourDuring the most recent month, the following activity was recorded:Direct materialsDirect laborStandardQuantity orHours7.20 pounds0.50 hoursa. Sixteen thousand nine hundred pounds of material were purchased at a cost of $2.60 per pound.b. All of the material purchased was used to produce 2,000 units of Zoom.c. 800 hours of direct labor time were recorded at a total labor cost of $8,800.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 noeffect (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.X FXUXUX F1. Materials price variance1. Materials quantity variance2. Labor rate variance2. Labor efficiency variance$20.88$ 5.00✓✓✓

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 Price or Rate Standard Cost$ 2.90 per pound$ 10.00 per hourDuring the most recent month

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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 7.20 pounds $ 2.90 per pound 0.50 hours $ 10.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor a. Sixteen thousand nine hundred pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $8,800. $ 20.88 $5.00 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.) Answer is complete but not entirely correct. F U U 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance

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 7.20 pounds $ 2.90 per pound 0.50 hours $ 10.00 per hour During the most recent month, the following activity was recorded: Direct materials Direct labor a. Sixteen thousand nine hundred pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 800 hours of direct labor time were recorded at a total labor cost of $8,800. $ 20.88 $5.00 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.) Answer is complete but not entirely correct. F U U 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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