Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5] 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: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate 6.80 pounds 0.20 hours $2.90 per pound $ 9.00 per hour Standard Cost $ 19.72 $ 1.80 During the most recent month, the following activity was recorded: a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 300 hours of direct labor time were recorded at a total labor cost of $3,300. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, 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. Round your intermediate calculations to the nearest whole dollar.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Check m
Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5] 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: Direct materials Direct labor Standard Quantity or Hours Standard Price or Rate 6.80 pounds 0.20 hours $2.90 per pound $ 9.00 per hour Standard Cost $ 19.72 $ 1.80 During the most recent month, the following activity was recorded: a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound. b. All of the material purchased was used to produce 2,000 units of Zoom. c. 300 hours of direct labor time were recorded at a total labor cost of $3,300. Required: 1. Compute the materials price and quantity variances for the month. 2. Compute the labor rate and efficiency variances for the month. (For all requirements, 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. Round your intermediate calculations to the nearest whole dollar.) 1. Materials price variance 1. Materials quantity variance 2. Labor rate variance 2. Labor efficiency variance Check m
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 8E: Standard cost summary; materials and labor cost variances Perkins Processors Inc. produces an...
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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.
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![Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5]
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:
Direct materials
Direct labor
Standard
Quantity or
Hours
Standard Price or
Rate
6.80 pounds
0.20 hours
$2.90 per pound
$ 9.00 per hour
Standard
Cost
$ 19.72
$ 1.80
During the most recent month, the following activity was recorded:
a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound.
b. All of the material purchased was used to produce 2,000 units of Zoom.
c. 300 hours of direct labor time were recorded at a total labor cost of $3,300.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, 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. Round your intermediate calculations to the nearest whole dollar.)
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
2. Labor efficiency variance
Check m](https://content.bartleby.com/qna-images/question/12af8c0c-8ede-43d2-bba1-1ee277c820b2/6bdb2207-e7f3-45ec-ba96-7e8124446ba8/uft50xb_processed.png)
Transcribed Image Text:Exercise 9-13 (Algo) Direct Materials and Direct Labor Variances [LO9-4, LO9-5]
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:
Direct materials
Direct labor
Standard
Quantity or
Hours
Standard Price or
Rate
6.80 pounds
0.20 hours
$2.90 per pound
$ 9.00 per hour
Standard
Cost
$ 19.72
$ 1.80
During the most recent month, the following activity was recorded:
a. Fifteen thousand one hundred pounds of material were purchased at a cost of $2.60 per pound.
b. All of the material purchased was used to produce 2,000 units of Zoom.
c. 300 hours of direct labor time were recorded at a total labor cost of $3,300.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, 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. Round your intermediate calculations to the nearest whole dollar.)
1. Materials price variance
1. Materials quantity variance
2. Labor rate variance
2. Labor efficiency variance
Check m
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