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 6.20 pounds $ 3.00 per pound $ 18.60 direct labor 0.40 hours $ 10.00 per hour $ 4.00 during the most recent month, the following activity was recorded: twelve thousand pounds of material were purchased at a cost of $2.90 per pound. the company produced only 1,200 units, using 10,800 pounds of material. (the rest of the material purchased remained in raw materials inventory.) 580 hours of direct labor time were recorded at a total labor cost of $6,960. required: 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). input all amounts as positive values.)

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?