Question

Check my work mode: This shows what is correct or incorrect for the work you have completed so Yarit da Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor unit of Zoom are given below: Standard Quantity or Hours 5.90 pounds 0.50 hours Standard Price or Rate $2.50 per pound $8.50 per hour Standard Cost $14.75 $ 4.25 Direct materials Direct labor During the most recent month, the following activity was recorded: a. Eleven thousand four hundred pounds of material were purchased at a cost of $2.40 per pound. b. The company produced only 1,140 units, using 10,260 pounds of material. (The rest of the material purchased remai materials inventory.) C. 670 hours of direct labor time were recorded at a total labor cost of $8,040. Required: Compute the materials price and quantity variances for the month. (Indicate the effect of each variance by selecting" favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values. Du intermediate calculations.) Answer is complete but not entirely correct. F Materials price variance Materials quantity variance $ 1,140 $ 11,685 U < Prey 4 of 6 !! Next >

Answer 1

Answer:- Direct Material price variance= $1140 F.

Direct Material Quantity variance = $8835 U

Explanation-

1)-Material price variance = (Standard price – Actual price) * Actual quantity purchased

                                       = ($2.50 per pound. - $2.40 per pound)* 11400 pounds   

                                       = $1140 Favorable

2)-Material Quantity variance = (Standard Quantity- Actual Quantity)*Standard price

                                              =(6726 pounds – 10260 pounds)*$2.50 per pound

                                             = $8835 Unfavorable

Where:-

Standard Quantity = No. of pounds per unit*Actual output

                               = 5.90 pounds per unit *1140 units = 6726 pounds