Ans. 1 a | Direct materials price variance = (Standard price - Actual price) * Actual quantity | ||||
($2.10 - $2) * 14,850 | |||||
$0.10 * 14,850 | |||||
$1,485 | favorable | ||||
Ans. 1 b | Direct materials quantity variance = (Standard quantity - actual quantity) * Standard price | ||||
(11,850 - 14,850) * $2.10 | |||||
-3,000* $2.10 | |||||
-$6,300 | or $6,300 unfavorable | ||||
*Standard quantity = Actual output * Standard quantity per unit of output | |||||
1,500 units * 7.90 pounds | |||||
11,850 pounds | |||||
Ans. 2 a | Direct labor rate variance = (Standard rate - Actual rate) * Actual hours | ||||
($5 - $7) * 600 | |||||
-$2 * 600 | |||||
-$1,200 | or -$1,200 unfavorable | ||||
*Actual rate = Actual labor cost / Actual hours | |||||
$4,200 / 600 | |||||
$7.00 | per hour | ||||
Ans. 2 b | Direct labor efficiency variance = (Standard hours - actual hours) * Standard rate | ||||
(750 - 600) * $5 | |||||
150 * $5 | |||||
$750 | favorable | ||||
*Standard hours = Actual output * Standard hours per unit of output | |||||
1,500 units * 0.50 hrs. | |||||
750 hours | |||||
*If the standard cost, rate or price and hours or quantity are higher than the actual it means the variance is favorable. | |||||
*If the standard cost, rate or price and hours or quantity are lower than the actual it means the variance is unfavorable. | |||||
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor...
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 7.90 pounds $ 2.10 per pound $ 16.59 Direct labor 0.50 hours $ 5.00 per hour $ 2.50 During the most recent month, the following activity was recorded: Fourteen thousand eight hundred and fifity pounds of material were purchased at a cost of...
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 6.00 pounds $ 2.30 per pound $ 13.80 Direct labor
0.50 hours $ 10.00 per hour $ 5.00 During the most recent month,
the following activity was recorded: Eleven thousand pounds of
material were purchased at a cost of $2.10 per pound. All...
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 7.50 pounds 0.80 hours Standard Price or Rate $2.40 per pound $7.00 per hour Standard Cost $18.00 $ 5.60 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 13,250.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the...
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 6.40 pounds 0.25 hours Standard Price or Rate $ 2.40 per pound $11.50 per hour Standard Cost $15.36 $ 2.88 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 17,500.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of...
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 7.40 pounds 0.45 hours Standard Price or Rate $2.60 per pound $8.00 per hour Standard Cost $19.24 $ 3.60 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 12,100.00 pounds of material were purchased at a cost of $2.50 per pound. b. All of the...
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 7.00 pounds 0.45 hours Standard Price or Rate $2.20 per pound $7.00 per hour Standard Cost $15.40 $ 3.15 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 19,500.00 pounds of material were purchased at a cost of $2.10 per pound. b. All of the...
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 7.80 pounds 0.30 hours Standard Price or Rate $2.50 per pound $6.00 per hour Standard Cost $19.50 $ 1.80 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 9,300.00 pounds of material were purchased at a cost of $2.20 per pound. b. All of the...
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 6.00 pounds 0.50 hours Standard Price or Rate $ 2.30 per pound $10.00 per hour Standard Cost $13.80 $ 5.00 Direct materials Direct labor During the most recent month, the following activity was recorded: a. 11,000.00 pounds of material were purchased at a cost of $2.10 per pound. b. All of...
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 Standard Quantity or Hours 7.30 pounds 0.60 hours Standard Price or Rate $2.80 per pound $9.00 per hour Direct materials Direct labor $20.44 $ 5.40 During the most recent month, the following activity was recorded: a. 16,600.00 pounds of material were purchased at a cost of $2.50 per pound. b. All of the material...
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 Standard Price Standard Hours or Rate Cost Direct materials 7.80 pounds $2.30 per $ 17.94 pounds Direct labor 0.30 hours $8.00 per hour $ 2.40 During the most recent month, the following activity was recorded: a. 25,900 pounds of material were purchased at a cost of $2.10 per pound. b. All of...