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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 | 7.40 | ounces | $ | 2.60 | per ounce | $ | 19.24 |
Direct labor | 0.45 | hours | $ | 8.00 | per hour | $ | 3.60 |
|
During the most recent month, the following activity was recorded: |
a. | 12,100 ounces of material were purchased at a cost of $2.50 per ounce. |
b. | All of the material was used to produce 1,500 bottles of Whim. |
c. | 575 hours of direct labor time were recorded at a total labor cost of $5,750. |
Required: |
1. | Compute the direct materials price and quantity variances for the month. |
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