Huron Company produces a cleaning compound known as Zoom. The direct materials and direct labor standards for
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Question:
Huron Company produces a 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 pound $
Direct labor hours $ per hour $
During the most recent month, the following activity was recorded:
Twenty thousand pounds of material were purchased at a cost of $ per pound.
All of the material purchased was used to produce units of Zoom.
hours of direct labor time were recorded at a total labor cost of $
Required:
Compute the materials price and quantity variances for the month.
Compute the labor rate and efficiency variances for the month.
Related Book For
Managerial Accounting
ISBN: 978-0697789938
13th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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