Week #7 – HW Assignment You MUST show all work in order to receive credit for the problems…. 1 answer below »

Week #7 – HW Assignment

You MUST show all work in order to receive credit for the problems.

Problem 1

Standard Quantity or Hours

Standard Price or Rate

Direct materials

6.8 pounds

$ 2.90 per pound

Direct labor

0.2 hours

$ 9 per hour

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

a.

15,100 pounds of material were purchased at a cost of $2.60 per pound.

b.

All of the material purchased was used to produce 2,000 units of Zoom.

c.

300 hours of direct labor time were recorded at a total labor cost of $3,300.

Required:

1. Compute the materials price and quantity variances for the month.

2. Compute the labor rate and efficiency variances for the month.