i need help with part 2 Exercise 813 Direct Materials and Di

i need help with part 2

Exercise 8-13 Direct Materials and Direct Labor Variances [L08-4, LO8-5] Huron Company produces a commercial dleaning 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 Direct materials Direct labor Cost 6.40 pounds S 2.40 per pounds $15.36 2.75 0.25 hours $11.00 per hour During the most recent month, the following activity was recorded a 17,500 pounds of material were purchased at a cost of $2 20 per pound b. All of the material purchased was used to produce 2,500 units of Zoom c. 475 hours of direct labor time were recorded at a total labor cost of$6,175 Required 1 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 (i.e., zero variance).) 3,500 Direct materials price variance Direct materials quantity variance3,600 u

Solution

Solution:

Part2 –

Labor Rate Variance

Actual Hourly Rate ($6,175 / 475 hours)

$13.00

Per Hour

Standard Hourly Rate

$11.00

Per Hour

Variance or Difference in Rate

$2.00

Per Hour

x Actual Labor Hours worked

475

Hours

Labor Rate Variance

$950

Unfavorable

Labor Quantity / Efficiency Variance

Standard Hours Allowed for actual production:

Actual Production

2500

Units

x Allowed Standard Hours Per Unit

0.25

hours

Total Standard Hours Allowed for actual production (SHAP)

625

hours

Actual Labor Hours Worked (AH)

475

hours

Variance or Difference in Hours

150

hours

x Standard Hourly Rate (SHR)

$11.00

per hour

Labor Efficiency Variance

$1,650

Favorable

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Labor Rate Variance
Actual Hourly Rate ($6,175 / 475 hours)	$13.00	Per Hour
Standard Hourly Rate	$11.00	Per Hour
Variance or Difference in Rate	$2.00	Per Hour
x Actual Labor Hours worked	475	Hours
Labor Rate Variance	$950	Unfavorable
Labor Quantity / Efficiency Variance
Standard Hours Allowed for actual production:
Actual Production	2500	Units
x Allowed Standard Hours Per Unit	0.25	hours
Total Standard Hours Allowed for actual production (SHAP)	625	hours
Actual Labor Hours Worked (AH)	475	hours
Variance or Difference in Hours	150	hours
x Standard Hourly Rate (SHR)	$11.00	per hour
Labor Efficiency Variance	$1,650	Favorable