Sonne Company produces a perfume called Whim. The direct materials and direct la

Question

Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below:

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). Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Compute the direct labor rate and efficiency 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). Round your intermediate calculations and final answers to the nearest dollar amount. Omit the "$" sign in your response.)

Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below:

Explanation / Answer

Answer:

Material Price Variance A Actual units of materials for given output 25900 B Standard Price per unit In$ 2.3 C Actual Price per unit in$ 2.1 A(B -C) 5180 (F) Material quantity Variance A Standard Price per unit In$ 2.3 B Standard units for given output 23400 (300 Units*7.8 ounce) C Actual units of materials for given output 25900 A(B -C) -5750 (U) Labor rate Variance A Actual hours 700 B Standard rate per hour In$ 8 C Actual rate per hour in$ 9 ($6300/700 hours) A(B -C) -700 (U) ` Labor efficiency Variance A Standard rate per hour In$ 8 B Standard hours for actual output 900 (3000 units*0.3 hr) C Actual Hours of labor 700 A(B -C) 1600 (F)

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