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Huron company produces a commercial cleaning compound known aszoom, the direct materials and direct labor standards for one unitof zoom are given below:
Standard Quantity orhours Standard price orrate standard cost
Direct materials......... 4.6 pounds...............$2.50 perpound...........................$11.50Direct labor................0.2 hours.................$12.00 perhour...........................$2.40
During the most recent month, the following activity wasrecorded:a. twenty thousand pounds of material were purchased at a a cost of$2.35 per pound.b. all of the material purchased was used to produces 4,000 unitsof zoom.c. 750 hours of direct labor time were recorded at a labor coast of$10,425.
Required:
1. compute the direct materials price and quantity variances forthe month2. compute the direct labor rate and efficiency variances for themonth
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