Everything is right except 4,560. Help me out please uces a commercial cleaning
ID: 2586327 • Letter: E
Question
Everything is right except 4,560. Help me out please uces a commercial cleaning compound known as Zoom. The direct materials and labor standards for one unit of Zoom are given below: Standard Quantity orStandard Price Stand Cost $14.40 1.75 or Rate ect materials rect labor Hours 7.20 pounds $ 2.00 per pounds 0.35 hours $ 5.00 per hour ring the most recent month, the following activity was recorded: 21,000 pounds of material were purchased at a cost of $1.70 per pound All of the material purchased was used to produce 2,500 units of Zoom. 725 hours of direct labor time were recorded at a total labor cost of $5,800 Required 1. 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 $ 6,300 Direct materials quantity variance [ S 4560 2. 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 S 2,175U Direct labor efficiency variance 750 escExplanation / Answer
Answer:- Material price variance = (Standard price – Actual price) * Actual quantity used
= ($2.00 per pound - $1.70 per pound)*21000 pounds used
= $6300 Favourable
Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price
=(18000 pounds – 21000 pounds)*$2.00 per pound
= $6000 Unfavourable
Where:-
Standard quantity = Pounds per units*Actual Production
=7.20 pounds per unit*2500 units
= 18000 pounds
Material cost variance = Material price variance+ Material Quantity variance
=$6300 Favourable + $6000 Unfavourable
=$300 Favourable
Labor Rate variance = (Standard rate – Actual rate) * Actual payment hour
= ($5.00 per hour - $8.00 per hour)*725 hours
= $2175 Unfavourable
Labor Efficiency variance = (Standard hours- Actual hours)*Standard rate per hour
=(875 hours – 725 hours)*$5.00 per hour
= $750 Favourable
Where:-
Standard hours = Hours per units*Actual Production
=.35 hours per unit*2500 units
= 875 hours
Labor cost variance = Labor price variance+ Labor Efficiency variance
=$2175 Unfavourable + $750 Favourable
=$1425 Unfavourable
Actual direct labor hour =$5800/725 hours =$8 per hour
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