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Exercise 11-2 Computing All Variances (L03 - CC15, 17, 18; L04 - CC22, 23) Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom follow Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials 4.30 kilograms $ 2.00 per kilogram $8.50 Direct labour 0.38 hour $11.00 per hour 4.18 Variable overhead 8.38 hour $ 1.80 per hour 0.68 The budgeted fixed overhead cost is $14.227 per month The denominator activity level of the allocation base is 1540 direct labour- hours During the most recent month, the following activity was recorded: a 10.100 kilograms of material were purchased at a cost of $2 21 per kilogram b. All of the material purchased was used to produce 3,000 units of Zoom c. A total of 770 hours of direct labour time was recorded at a total labour cost of 8,393 d. The variable overhead cost was $1,540, and the fixed overhead cost was $22,652 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).) Help Save & Exit Submit 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).) Materials price variance Materials quantity variance 2. Compute the direct labour rate and efficiency 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).) Help Save & Exit Submit 2. Compute the direct labour rate and efficiency variances for the month (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (.e., zero variance).) Labour rate variance Labour efficiency variance 3. Compute the variable overhead spending and efficiency variances for the month (Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect... zero variance). Round "Efficiency variance" to 2 decimal places.) 3. Compute the variable overhead spending and efficiency variances for the month (Indicate the effect of each variance by selecting "F* for favourable, "U" for unfavourable, and "None" for no effect (i.e., zero variance), Round "Efficiency variance" to 2 decimal places.) Variable overhead spending variance Variable overhead efficiency variance 4. Compute the fixed overhead budget and the volume variances for the month (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect (.e., zero variance).) e nxed overhead budget and the volume variances for the month. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (e., zero variance):) Fixed overhead budget variance Fixed overhead volume variance hes 5. Compute the underapplied or overapplied overhead for the month (Round intermediate calculations and round final answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable. "U" for unfavourable, and "None" for no effect file zero variance).) Sub 5. Compute the underapplied or overapplied overhead for the month (Round intermediate calculations and round final answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favourable, "U" for unfavourable, and "None" for no effect (ie, zero variance).) Total variable overhead variance Total fixed overhead variance overhead is