Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below:Standard Quantityor HoursStandardCostDirect materialsStandard Price or Rate$ 3.00 per pound$14.00 per hour7.00 pounds0.40 hoursDirect labor$ 21.00$5.60During the most recent month, the following activity was recorded:Booka. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound.Fb. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in rawmaterials inventory.)Printc. 644 hours of direct labor time were recorded at a total labor cost of $7,728.0Required:ReferencesCompute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting "F" forfavorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not roundintermediate calculations.)Materials price varianceMaterials quantity varianceNext >5 of 6< PrevMacBook AirFIFO-McGrawHill1QA2optionN@2340F2WS#m3XHcommand80F3ED$4888FACRF%520TVA6GYB&7HU8NDHDIJFR(D9TKMOOL<-PV1command{Check my worI1?1option

Name: Huron Company produces a commercial cleaning compound known as Zoom.
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Description: Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for oneunit of Zoom are given below:Standard Quantityor HoursStandardCostDirect materialsStandard Price or Rate$ 3.00 per pound$14.0

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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 Cost Direct materials Standard Price or Rate $ 3.00 per pound $ 14.00 per hour 7.00 pounds 0.40 hours Direct labor $ 21.00 $5.60 During the most recent month, the following activity was recorded: a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 644 hours of direct labor time were recorded at a total labor cost of $7,728. Required: S 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.) Materials price variance Materials quantity variance

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 Cost Direct materials Standard Price or Rate $ 3.00 per pound $ 14.00 per hour 7.00 pounds 0.40 hours Direct labor $ 21.00 $5.60 During the most recent month, the following activity was recorded: a. Thirteen thousand six hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,360 units, using 12,240 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 644 hours of direct labor time were recorded at a total labor cost of $7,728. Required: S 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.) Materials price variance Materials quantity variance

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter9: Standard Costing: A Functional-based Control Approach

Section: Chapter Questions

Problem 33P: Business Specialty, Inc., manufactures two staplers: small and regular. The standard quantities of...

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