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. (Do not round your per unit rates. 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.)

Compute the direct labor rate and efficiency variances for the month. (Do not round your per unit rates. 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.)

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

Explanation / Answer

1) Material Price Variance=AQ(SR-AR)=9,300($2.5-$2.2)=$2,790-F

Material Quantity Variance=SR(SQ-AQ)=$2.5(7,800-9,300)=$3,750-U

2)Labour rate Variance=AH(SR-AR)=200($6-$7)=$200-U

Labour Efficiency Variancde=SR(SH-AH)=$6(300-200)=$600-F

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