ezto.mheducation.com/hm.tpx Question 6 (of 8) value 1 1.50 points Sonne Company

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ezto.mheducation.com/hm.tpx Question 6 (of 8) value 1 1.50 points 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 Standard Price Sta Cost Direct materials 6.90 ounces $ 260 per ounce $17.94 0.30 hours 7.00 per hour 2.10 Hours or Rate Direct labor During the most recent month, the following activity was recorded b All of the material was used to produce 2.500 bottles of Whim a. 19.250 ounces of material were purchased at a cost of $2. 40 per ounce c. Four hundred fifty hours of direct labor time were recorded at a total labor cost of $4 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 offect of each varlance by selecting "F for favorable, "U" for unfavorable and "None" for no offect fi.e.. zero variance).) Direct materials quantity variance Direct materials price variance (Click to select) (Click to select) 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 "O" wherever required. Indicate the effect of each varlance by selecting "F" for favorable, "U" for unfavorable, and aio e @.9- Ask me anything

Explanation / Answer

6)

DMQV = (2500 * 6.90 - 19250) 2.60 = $5200 UF

DMPV = (2.60 - 2.40) 19250 = $3850 F

DLEV = (2500 * 0.30 - 450)7 = $2100 F

DLRV = (7 - 10) 450 =$1350 UF

7)

REVENUE AND SPENDING VARIANCES:

Flexible budget $ Actual result $ variance F/UF Revenue 73670 76960 3290 F Expenses: RM 23850 25790 1940 UF Wages 10630 11130 500 UF Utilities 2330 2201 129 F Rent 3120 3120 - - Insurance 2000 2000 - - Miscellaneous 1050 1166 116 UF Total Expenses 42980 45407 2427 UF Net Operating Income 30690 31553 863 F

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