Compute the direct labor efficiency and rate variances

Question

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	7.80	ounces	$	2.50	per ounce	$	19.50
Direct labor	0.30	hours	$	6.00	per hour	$	1.80

During the most recent month, the following activity was recorded:

a.	9,300 ounces of material were purchased at a cost of $2.20 per ounce.
b.	All of the material was used to produce 1,000 bottles of Whim.
c.	Two hundred hours of direct labor time were recorded at a total labor cost of $1,400.

Required:

1.

Compute the direct materials quantity and price variances for the month. (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. 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).)

Direct materials quantity variance	$
Direct materials price variance	$

2.

Compute the direct labor efficiency and rate variances for the month. (Input all amounts as positive values. Do not round your per unit rates, round other intermediate calculations and your final answer to nearest whole dollar. 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).)

Direct labor efficiency variance	$
Direct labor rate variance	$