Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for on unit of Zoom are given below: Standard Quantity or Direct materials Direct labor Hours 5.40 pounds 0.40 hours Standard Price or Rate Standard Cost $3.00 per pound $0.00 per hour $ 16.20 $2.40 During the most recent month, the following activity was recorded a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory) c. 516 hours of direct labor time were recorded at a total tabor cost of $6.192. Required: Compute the materials price and quantity variances for the month (Indicete the effect of each veriance by selecting F for favorable, "U" for unfavorable, and "None" for no effect (ie, zero veriance). Input all amounts as positive velues. 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 on unit of Zoom are given below: Standard Quantity or Direct materials Direct labor Hours 5.40 pounds 0.40 hours Standard Price or Rate Standard Cost $3.00 per pound $0.00 per hour $ 16.20 $2.40 During the most recent month, the following activity was recorded a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound. b. The company produced only 1,040 units, using 9,360 pounds of material. (The rest of the material purchased remained in raw materials inventory) c. 516 hours of direct labor time were recorded at a total tabor cost of $6.192. Required: Compute the materials price and quantity variances for the month (Indicete the effect of each veriance by selecting F for favorable, "U" for unfavorable, and "None" for no effect (ie, zero veriance). Input all amounts as positive velues. 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...
Related questions
Concept explainers
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
Topic Video
Question
Transcribed Image Text:board.com%
Saved
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
$ 3.00 per pound
$ 6.00 per hour
Standard Cost
Direct materials
Direct labor
5.40 pounds
0.40 hours
$ 16.20
$2.40
During the most recent month, the following activity was recorded:
a. Ten thousand four hundred pounds of material were purchased at a cost of $2.90 per pound.
b. The company produced only 1,040 units, using 9,360 pouhds of material. (The rest of the material purchased remained in raw
materials inventory.)
c. 516 hours of direct labor time were recorded at a total labor cost of $6,192.
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.)
Materials price variance
Materials quantity variance
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:
9781305087408
Author:
Edward J. Vanderbeck, Maria R. Mitchell
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning