Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. exercise 10-7 direct materials variances [lo10-1]

Exercise 10-7 Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound...

70.2K

Verified Solution

Question

Accounting

image

Exercise 10-7 Direct Materials Variances [LO10-1] 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 Price or Rate 2.50 per pound $12.00 per hour Standard Direct materials 4.6 pounds Direct labor Cost $11.50 $ 2.40 0.2 hours During the most recent month, the following activity was recorded a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound b. The company produced only 3,000 units, using 14,750 pounds of material. (The rest of the material purchased remained in raw materials inventory.) c. 750 hours of direct labor time were recorded at a total labor cost of $10,425 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).) Direct materials price variance Direct materials quantity variance

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

Prove or disprove the following statements: a) If both x2 and x3 are rational, then so is...

Mechanical Engineering
1.2K views

A Carnot-cycle refrigerator rejects heat at the pressure of 1000 kPa during which the working fluid...

Advance Math
1.2K views

An airline has 50 airplanes in Los Angeles, 16 airplanes in St. Louis, and 8 airplanes...

Physics
1.2K views

In an L C circuit shown in the figure C 1F L 4H At time...

Basic Math
1.2K views

e table shows the worldwide box office in billions of dollars for the movie industry...

Algebra
1.2K views

23 In six years Rose will be two times as old as Anne Four years...

Algebra
1.2K views

10 Find the point x y on the unit circle that corresponds to the real...

Accounting
1.2K views

Labor costs of an auto repair mechanic are seldom based on actual...

Accounting
1.2K views

AA 5-1 Company Analysis LO C2, A3 Use Apple's financial statements in Appendix A to...

Accounting
1.2K views

CASE STUDY PLEASE ANSWER PART B CALCULATION PARTS Practical traders, who believe themselves...

Accounting
1.2K views

Sales, Production, Direct Materials Purchases, and Direct Labor Cost The budget director of Royal British...

Accounting
1.2K views

Cavite Company acquired land and building by issuing 60,000, P100 par value, ordinary shares. On...