Huron Company produces a commercial cleaning compound known as Zoom. The direct
ID: 2421875 • Letter: H
Question
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:
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).)
Direct Materials Price Variance ________________
Direct Materials Quantity Variance ______________
Compute the labor rate and efficiency 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).)
Direct Labor Rate Variance _____________
Direct 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:
Explanation / Answer
Material price variance = (2.30 - 2.10)16,500
= 3500(F)
Material qty variance = (2,000*7.5 - 16,500)2.3
= 3,450(U)
Direct labor rate variance = (7.5-8.5)500
=500(U)
Direct labor efficiency variance = (.35*2000 - 500)7.5
= 1,500(F)
Material price variance = (2.30 - 2.10)16,500
= 3500(F)
Material qty variance = (2,000*7.5 - 16,500)2.3
= 3,450(U)
Direct labor rate variance = (7.5-8.5)500
=500(U)
Direct labor efficiency variance = (.35*2000 - 500)7.5
= 1,500(F)
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