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 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).)

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).)

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

Explanation / Answer

Required:

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 = (Standard Qty - Actual Qty)*Standard Rate

Direct materials quantity variance= (7.80*1000 - 9300)*2.50

Direct materials quantity variance = $ 3750 U

Direct materials price variance= (Standard Rate - Actual Rate)*Actual Qty

Direct materials price variance = (2.50-2.20)*9300

Direct materials price variance = 2790 F

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 = (Standard hour - Actual Hour)*Standard Rate

Direct labor efficiency variance = (0.3*1000 - 200)*6

Direct labor efficiency variance = $ 600 F

Direct labor rate variance = (Standard Rate *Actual Hour - Actual Labor cost)

Direct labor rate variance = (6*200 - 1400)

Direct labor rate variance = 200 U

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).)

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