Huron Company produces a commercial cleaning compound known as Zoom The direct m

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: During the most recent month the following activity was recorded Thirteen thousand pounds of material were purchased at a cost of $2,40 per pound The company produced only 1,300 units, using 11,700 pounds of material (The rest of the material purchased remained in raw materials inventory) Seven hundred and fifty hours of direct labor time were recorded at a total labor cost of $9,000 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). Do not round intermediate calculations.)

Explanation / Answer

SQSP AQSP   AQAP

8,710 x 2.5                                           11,700 x 2.5                                                       11,700 x 2.4

= $ 21,775 =$ 29,250 = $ 28,080

SP = Standard price = $ 2.50

SQ = Standard Quantity for actual production = 6.7 x 1,300 = 8,710      

AP= Actual price = $ 2.40

AQ = Actual Quantity used = 11,700

Related Questions

Navigate

• Browse (All)
• Browse H
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.