3 Exercise 11-2 Computing All Variances (LO3- CC15, 17, 18; LO4 - CC22, 23) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for orie unit of Zoom follow Standard Price B ports Book Pret Beferences Direct materials Direct labour Variable overhead Standard Quantity or Hours or Rate Standard Cost 0.40 hour 0.40 hour $1.80 per kilogran $7.00 per hour $1.10 per hour $7.38 2,00 0.44 The budgeted foed overhead cost is $15,014 per month. The denominator activity level of the allocation base is 1,360 direct labour- hours During the most recent month, the following activity was recorded a. 10.500 kilograms of material were purchased at a cost of $2.19 per kilogram b. All of the material purchased was used to produce 3.400 units of Zoom c. A total of 810 hours of direct labour time was recorded at a total labour cost of 9.153 d. The variable overhead cost was $1,620, and the fixed overhead cost was $27023 Required: 1. Compute the direct materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (ie., zero variance).) Mc Graw Materials price variance Materials quantity variance < Prev 3 of 8 Next >