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 |
7.5 |
ounces |
$ |
2.7 |
per ounce |
$ |
20.25 |
| Direct labor |
0.3 |
hours |
$ |
10.1 |
per hour |
$ |
3.03 |
|
| During the most recent month, the following activity was recorded: |
| a. |
19,350 ounces of material were purchased at a cost of $2.6 per ounce. |
| b. |
The company produced only 1,800 bottles using 15,350 ounces of material. The rest of the material purchased remained in raw materials inventory. |
| c. |
590 hours of direct labor time were recorded at a total labor cost of $7,434. |
| Required: |
|
Compute the direct materials price and quantity variances for the month. (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.)
|
|
|
|
| 1) Direct materials price variance$___1,935__ Favorable |
|
|
| 2)Direct materials quantity variance$____________ Unfavorable |