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:

(a)        Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.

(b)        All of the material purchased was used to produce 4,000 units of Zoom.

(c)        750 hours of direct labor time were recorded at a total labor cost of $10,425.

Required:

1.         Compute the direct materials price and quantity variances for the month.

2.         Compute the direct labor rate and efficiency variances for the month.

Transcribed Image Text:

Standard Quantity Standard Price or Hours 4.6 pounds Standard Cost or ate or $2.50 per pound $2.40 $12.00 per hour Direct materials $11.50 Direct labor 0.2 hours