Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below:
- Standard Quantity or Hours Standard Price or Rate Standard Cost
- Direct materials 7.2 ounces $ 2.50 per ounce $ 18.00
- Direct labor 0.4 hours $ 10.00 per hour $ 4.00
During the most recent month, the following activity was recorded:
a. Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce.
b. All of the material was used to produce 2,500 bottles of Whim.
c. Nine hundred hours of direct labor time were recorded at a total labor cost of $10,800.
Required:
1.Compute the direct materials price and quantity variances for the month. (Input all amounts as positive values. Do not round your per unit rates. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
- Direct materials price variance $
- Direct materials quantity variances $
2.Compute the direct labor rate and efficiency variances for the month. (Input all amounts as positive values. Do not round your per unit rates. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
- Direct labor rate variance $
- Direct labor efficiency variances $