VI 10-5 - 10-10

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
10-10 Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below: (K) 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.  Direct materials price variance = AQ (AP - SP) = 20,000 ounces($2.40 – $2.5) = 2,000 F AQ = actual quantity purchased, AP = actual price/yard, SP = standard price/yard Direct materials quantity variance = SP (AQ - SQ) = $2.5(20,000 – (2,500 x 7.2)) = $5,000 U AQ = actual quantity used, SQ = standard quantity to be used 2. Compute the direct labor rate and efficiency variances for the month. Direct labor rate variance
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

VI 10-5 - 10-10

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online