GHW 7 (Ch 8) x . Science ABC » (- , C eztomheducation.com/hmtpx ::: Apps w Canva
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GHW 7 (Ch 8) x . Science ABC » (- , C eztomheducation.com/hmtpx ::: Apps w Canvas ? Academica Q. Mail Apple Bing G Google?Yahoo ? HowM E connect ACCOUNTING Question 7 fof 8 200 points Exercise 8-13 Direct Materials and Direct Labor Variances [L08-4, LO8-5 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 Quantity or Standard PriceStanda Hoursor Rate Direct materials Direct labor 6.40 pounds $ 2.40 per pounds$15.36 2.75 0.25 hours $11.00 per hour During the most recent month, the following activity was recorded a. 17,500 pounds of material were purchased at a cost of $2.20 per pound. b. All of the material purchased ?. 475 hours of direct labor trne were recorded at a total labor cost of $6.175. was used to produce 2,500 units of Zoom Required: 1. compute the materiais price and quanity variances for the month (Indicate the offect of each variance by selecting F" for favorable, "U" for unfavorable, and "None" for no effect (l.e., zero Direct materials price variance Direct materials quantity variance O Type here to searchExplanation / Answer
Huron Company Direct Material Direct Labour Standard Quantity or hour per unit 6.4 Pound 0.25 Per Hour Standard Price or Rate 2.4 Per Pound $ 11.00 Per Hour Standard cost per unit 15.36 $ 2.75 Actual Purchase 17500 Pounds of direct material at a cost of $2.20 per pound Actual Production 2500 Units Actual Direct Labour Cost $6,175 Direct Labor Hours 475 Hours Actual Rate=($6175/475) 13 Standard Hours=(2500*.25) 625 Hours Material Quantity Variance(AQ*SP)-(SQ*SP)=17500*$2.4-(2300*6.4)*$2.4 6672 (U) Material Price Variance=(AQ*AP)-(AQ*SP)=17500*$2.20-17500*$2.4 -3500 (F) Direct Labor Rate Variance(=AH*AR)-(AH*SR)=(475*$13)-(475*$11) 950 (U) Direct Labor Efficiency Variance(=AH*SR)-(SH*SR)=(475*$11)-(625*$11) -1650 (F)
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