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

During the most recent month, the following activity was recorded:
a. Twenty thousand ounces of material were purchased at a cost of $2.40 per ounce.
b. All of the material was used to produce 2,500 bottles of Whim.
c. Nine hundred hours of direct labor time were recorded at a total labor cost of $10,800.

Required:
1. Compute the direct materials price and quantity variances for the month.
2. Compute the direct labor rate and efficiency variances for themonth.

Transcribed Image Text:

Standard Quantity Standard Price Standard or Hours or Rate Cost Direct materials Direct labor 7.2 ounces 0.4 hours $2.50 per ounce $18.00 10.00 per hour $4.00