Question
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
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 Hours | Standard Price or Rate | Standard Cost | |||||
Direct materials | 7.90 | ounces | $ | 2.10 | per ounce | $ | 16.59 |
Direct labor | 0.50 | hours | $ | 5.00 | per hour | $ | 2.50 |
During the most recent month, the following activity was recorded: |
a. | 14,850 ounces of material were purchased at a cost of $2.00 per ounce. | ||||||||||||||
b. | All of the material was used to produce 1,500 bottles of Whim. | ||||||||||||||
c. | Six hundred hours of direct labor time were recorded at a total labor cost of $4,200.
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