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 |
ounces |
$ |
2.90 |
per ounce |
$ |
20.30 |
| Direct labor |
0.3 |
hours |
$ |
9.60 |
per hour |
$ |
2.88 |
|
| During the most recent month, the following activity was recorded: |
| a. |
20,600 ounces of material were purchased at a cost of $2.60 per ounce. |
| b. |
The company produced only 2,200 bottles using 16,600 ounces of material. (The rest of the material purchased remained in raw materials inventory). |
| c. |
720 hours of direct labor time were recorded at a total labor cost of $8,496. |
| Required: |
|
Compute the direct material price and quantity variances for the month. (Input all amounts as positive values. 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 price variance |
$ |
?? |
| Direct materials quantity variance |
$ |
?? |
|