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Home / Questions / EXERCISE 10 6 Material and Labor Variances LO1 LO2 Sonne Company produces a perfume calle...

EXERCISE 10 6 Material and Labor Variances LO1 LO2 Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below

EXERCISE 10–6 Material and Labor Variances [LO1, LO2]

Sonne Company produces a perfume called Whim. The direct materials and direct labor standards for one bottle of Whim are given below:

 

 

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.

2.       Compute the direct labor rate and efficiency variances for the month.

Jun 28 2020 View more View Less

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