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:
Answer the following:
Refer to the information above. Assume that instead of producing 2,500 bottles of Whim during the month, the company produced only 2,000 bottles using 16,000 ounces of material. (The rest of the material purchased remained in raw materials inventory.)
Compute the direct materials quantity and price variances for the month.
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