Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
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: Direct materials Direct labor Standard Quantity or Hours 5.80 pounds 0.40 hours Standard Price or Rate $ 3.00 per pound $ 8.00 per hour Materials price variance Materials quantity variance Standard Cost $17.40 $3.20 During the most recent month, the following activity was recorded: a. Eleven thousand two hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,120 units, using 10,080 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 548 hours of direct labor time were recorded at a total labor cost of $6,576. 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). Input all amounts as positive values. Do not round intermediate calculations.) 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: Direct materials Direct labor Standard Quantity or Hours 5.80 pounds 0.40 hours Standard Price or Rate $ 3.00 per pound $ 8.00 per hour Materials price variance Materials quantity variance Standard Cost $17.40 $3.20 During the most recent month, the following activity was recorded: a. Eleven thousand two hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,120 units, using 10,080 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 548 hours of direct labor time were recorded at a total labor cost of $6,576. 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). Input all amounts as positive values. Do not round intermediate calculations.)
Expert Answer:
Answer rating: 100% (QA)
The following are the computations for material price and quantity variances for the ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9781260247787
17th Edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date:
Students also viewed these economics questions
-
Consider two independent projects, A and B, with cash flows presented. Assume that the cost of capital, e the required rate of return is 14%. Note the Year 0 cash flow represents the initial cost of...
-
Consider the homogeneous heat problem with type II BCs: du Ju Ju (0,t)=0= x u (x,0) = f(x) t x x where t > 0, 0x 1 and f is a piecewise smooth function on [0, 1]. (a) Find the eigenvalues An and the...
-
Mention four (4) factors that affect downstream processes (DSP).
-
Clark had brain surgery. Insurance will not pay for the surgery until the deductible of $1,000 is hit. Then Clark's coinsurance of 80% / 20% kicks in. Clark has an out-of-pocket maximum of $7,500....
-
Sailmaster makes boats and has the following costs and production levels for the last eight quarters: 1. Plot the data on a scattergraph, and visually fit a straight line through the points. 2. Based...
-
Comparative Analysis Case adidas and Puma The financial statements of adidas (DEU) and Puma (DEU) are presented in Appendices B and C, respectively. The complete annual reports, including the notes...
-
An object falls at a rate of \(100 \mathrm{ft} / \mathrm{s}\) immediately prior to the time that the parachute attached to it opens. The final descent rate with the chute open is \(10 \mathrm{ft} /...
-
The following form is used by Matsuto Manufacturing Co. to compute payroll taxes incurred during April: Required: 1. Using the above form, calculate the employers payroll taxes for April. Assume that...
-
The proper allocation of manufacturing overhead to products produced is required by Generally Accepted Accounting Principles (GAAP) and provides a sound basis for pricing products using a full cost...
-
Calculator Calculating Payroll Taxes Expense and Preparing Journal Entry Selected information from the payroll register of Ebeling's Dairy for the week ended July 7, 20--, is shown below. The SUTA...
-
Evaluate So Far |x - 2|dx
-
If the NPV of a project is $18 million and the profitability index is 5, what was the initial investment necessary to pursue the project?
-
Explain how tortious liability arises as a civil wrong using case law?
-
Prepare the 2 0 1 3 and 2 0 1 4 common - size balance sheets for A - Link Company. Prepare the 2 0 1 4 common - base year balance sheet for A - Link Company. Prepare the 2 0 1 4 combined common -...
-
explain how to calcuate tolerable misstatement in this excel problem for the following highlighted in yellow color Account Name Cash and cash equivalents Receivables, net Inventory Prepaid expenses...
-
If a country has no TFP growth, an investment rate of 24%, a depreciation rate of 10%, 2% population growth, TFP = 1 and = 0.3, then its steady state capital per worker will be about 56. Is this...
-
Company XYZ has 60 million shares of stocks traded at a current market price of $120. It also has outstanding debt of $3 billion with a pre-tax cost of debt at 10%. You calculate that the Beta of...
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
Lubricants, Inc., produces a special kind of grease that is widely used by race car drivers. The grease is produced in two processing departmentsRefining and Blending. Raw materials are introduced at...
-
What does sub optimization mean?
-
Han Products manufactures 30,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials . . . . . . . . . . . . . ....
-
Calculate the correlations among all numeric variables in Exercise 9.1 using SPSS, or R. (In R read in the data as a data.frame (e.g., theData) and then use (cor(theData). You dont need to attach...
-
What are the strongest single predictors of infant mortality in Exercise 9.2? Exercise 9.2 Calculate the correlations among all numeric variables in Exercise 9.1 using SPSS, or R. (In R read in the...
-
Using one of the online calculators, how large a correlation would you need for the relationships shown in Exercise 9.2 to be significant? (This will involve a bit of trial and error.) Calculate the...
Study smarter with the SolutionInn App