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

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). Do not round your intermediate calculations.)

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

1 Direct materials price variance = 18500*(1.4-1.7)= $5550 F Direct materials quantity variance=1.7*(18500-2500*6.4)= $4250 U 2 Direct labor rate variance=13600-(800*14)= $2400 U Direct labor efficiency variance=14*(800-2500*0.4)= $2800 F

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