many 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 7.2 ounces $ 2.50 per ounce $ 18.00
Direct labor 0.4 hours $ 10.00 per hour $ 4.00

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. (Input all amounts as positive values. Do not round your per unit rates. 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.)


Direct materials price variance $
Direct materials quantity variances $

2.

Compute the direct labor rate and efficiency variances for the month. (Input all amounts as positive values. Do not round your per unit rates. 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.)


Direct labor rate variance $
Direct labor efficiency variances $
I tried calculating the difference of the actual price and the standard rate for the first one but I am not sure how to incorporate the ones in a,b, c into the given direct labor and variance part

Quote:

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Originally Posted by yolo200

many 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 7.2 ounces $ 2.50 per ounce $ 18.00
Direct labor 0.4 hours $ 10.00 per hour $ 4.00

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. (Input all amounts as positive values. Do not round your per unit rates. 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.)


Direct materials price variance $
Direct materials quantity variances $

2.

Compute the direct labor rate and efficiency variances for the month. (Input all amounts as positive values. Do not round your per unit rates. 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.)


Direct labor rate variance $
Direct labor efficiency variances $
i tried calculating the difference of the actual price and the standard rate for the first one but i am not sure how to incorporate the ones in a,b, c into the given direct labor and variance part

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In variance reporting there are about nine different variances that can be calculated these are related to volume, price, and efficiency and all require only simple mathematics and logic

So you have standard labour hours, standard labour cost, standard material cost, actual labour hours, actual labour cost, efficiency, standard overheads, actual overheads all of these give rise to variances

If you want comment you must do more than describe your methodology you must present your workings and results

That was the dumbest answer I have ever heard of.

Yes well when you don't know how to answer the question who is dumb