Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards
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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:
Standard Quantity or Hours Standard Price
or Rate Standard
Cost
Direct materials pounds $ per pounds $
Direct labor hours $ per hour $
During the most recent month, the following activity was recorded:
a pounds of material were purchased at a cost of $ per pound.
b All of the material purchased was used to produce units of Zoom.
c hours of direct labor time were recorded at a total labor cost of $
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 ie zero 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 ie zero variance Do not round your intermediate calculations.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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