Managerial Accounting: E11-8 Huron Company produces a commercial cleaning compound

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Managerial Accounting
Exercise 11-8 Direct Materials and Direct Labor Variances
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:
Std Qty or hours Std Price or rate Std Cost
Direct materials 4.6 pounds $2.50 per pound $11.50
Direct labor 0.2 hours $12.00 per hour $2.40

During the most recent month, the following activity was recorded:
a. Twenty thousand pounds of material were purchased at a cost of $2.35 per pound.
b. All of the material purchased was used to produce 4,000 units of Zoom.
c. 750 hours of direct labor time were recorded at a total labor cost of $10,425.

Required:
1. Compute the direct materials price and quantity variances for the month.
2. Compute the direct labor rate and efficiency variances for the month.
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