Reference no: EM132492640

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labour standards for one unit of Zoom follow:

                                     Standard Quantity of Hours                  Standard Price of Rate                     Standard Cost

Direct materials               4.10 kilograms                                        $ 1.90 per kilogram                     $ 7.79

Direct labour                     0.42 hour                                                  $9.00 per hour                     3.78

Variable overhead                   0.42 hour                                                 $1.50 per hour                    0.63

• The budgeted fixed overhead cost is $15,012 per month. The denominator activity level of the allocation base is 1,554 direct labour-hours.

During the most recent month, the following activity was recorded:

a. 10,800 kilograms of material were purchased at a cost of $2.18 per kilogram.

b. All of the material purchased was used to produce 3,700 units of Zoom.

c. A total of 810 hours of direct labour time was recorded at a total labour cost of 9,396.d.The variable overhead cost was $1,620, and the fixed overhead cost was $30,878.

Required:

Question 1. Compute the direct 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).)

Question 2. Compute the direct labour rate and efficiency 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).)

Question 3. Compute the variable overhead spending and efficiency 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). Round "Efficiency variance" to 2 decimal places.)

Question 4. Compute the fixed overhead budget and the volume variances for the month. (Round intermediate calculations to the nearest whole dollar amount. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)

Question 5. Compute the underapplied or overapplied overhead for the month. (Round intermediate calculations and round final answer to 2 decimal places. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)