Chapter 9, Problem 13E

Direct Materials and Direct Labor Variances
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:

During the most recent month, the following activity was recorded:
a. Twenty thousand pounds of material were purchased at a cost of S2.35 per pound.
b. All of the material purchased was used to produce 4.000 units of Zoom.
c. 750 hours of direct labor time were recorded at a total labor cost of S14.925.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.