Exercise 10-7 Direct Materials Variances [LO10-1] Huron Company produces a commercial cleaning compound known as...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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
Standard Cost
Direct materials
5.30
pounds
$
2.50
per pound
$
13.25
Direct labor
0.50
hours
$
5.50
per hour
$
2.75
During the most recent month, the following activity was recorded:
Ten thousand two hundred pounds of material were purchased at a cost of $2.40 per pound.
The company produced only 1,020 units, using 9,180 pounds of material. (The rest of the material purchased remained in raw materials inventory.)
610 hours of direct labor time were recorded at a total labor cost of $7,320.
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). Input all amounts as positive values. Do not round intermediate calculations.)
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!
