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 pounds $ per pound $
Direct labor hours $ per hour $
During the most recent month, the following activity was recorded:
Twenty thousand pounds of material were purchased at a cost of $ per pound.
The company produced only units, using pounds of material. The rest of the material purchased remained in raw materials inventory.
hours of direct labor time were recorded at a total labor cost of $
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 ie zero variance Input all amounts as positive values.
