# VI 10-5 - 10-10 .(K , a b c \$2.40perounce

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

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

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 2

VI 10-5 - 10-10 .(K , a b c \$2.40perounce

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

View Full Document
Ask a homework question - tutors are online