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 7.80 pounds $ 2.30 per pounds $ 17.94 Direct labor 0.30 hours $ 8.00 per hour $ 2.40 During the most recent month, the following activity was recorded: a. 25,900 pounds of material were purchased at a cost of $2.10 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 700 hours of direct labor time were recorded at a total labor cost of $6,300.
Required: 1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.

Instructions are below.

Explanation:

Giving the following information:

Standard Cost Direct materials 7.80 pounds $ 2.30 per pounds $7.94

Direct labor 0.30 hours $ 8.00 per hour $ 2.40

Actual:

a. 25,900 pounds of material was purchased at a cost of $2.10 per pound.

b. All of the material purchased was used to produce 3,000 units of Zoom.

c. 700 hours of direct labor time were recorded at a total labor cost of $6,300.

To calculate the direct material price and quantity variance, we need to use the following formulas:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2.3 - 2.1)*25,900

Direct material price variance= $5,180 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (7.8*3,000 - 25,900)*2.3

Direct material quantity variance= $5,750 unfavorable

To calculate the direct labor rate and efficiency variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (0.3*3,000 - 700)*8

Direct labor time (efficiency) variance= $1,600 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (8 - 6,300/700)*700

Direct labor rate variance= $700 unfavorable

the answerr would be 1

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"