Castle Company produces throw blankets that are popular holiday gifts. Standard variable costs relating to a single blanket are given below
|
|
Standard Quantity or Hours |
Standard Price or Rate |
Standard Cost |
|
Direct materials |
2.62 yards |
$5 per yard |
$? |
|
Direct labor |
1.35 DLH |
$6.80 per DLH |
$? |
|
Variable manufacturing overhead |
1.35 DLH |
$2 per direct labor-hour |
$? |
|
Total standard cost |
|
|
$? |
Overhead is applied to production on the basis of direct labor hours. During March, 924 blankets were manufactured and sold.
Selected information related to the month’s production is given below:
|
|
Materials Used |
Direct Labor |
Variable Manufacturing Overhead |
|
$11,500 |
$8,408 |
$3,100 |
|
|
Direct materials price variance |
? |
|
|
|
Actual |
2,620 yards |
1400 hours |
|
|
Direct materials quantity variance |
$1,000 U |
|
|
|
Direct labor rate variance |
|
? |
|
|
Direct labor efficiency variance |
|
? |
|
|
Variable overhead rate variance |
|
|
? |
|
Variable overhead efficiency variance |
|
|
? |
|
*For this month’s production of 924 blankets |
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Submit an Excel document with each tab labeled by item number in good form that demonstrates the following through your calculations:
<!–[if !supportLists]–>1. <!–[endif]–>What is the standard cost of a single blanket?
<!–[if !supportLists]–>2. <!–[endif]–>What was the actual cost per blanket produced during March?
<!–[if !supportLists]–>3. <!–[endif]–>What was the direct materials price variance for March?
<!–[if !supportLists]–>4. <!–[endif]–>What was the direct labor rate variance for March? The direct labor efficiency variance?
<!–[if !supportLists]–>5. <!–[endif]–>What was the variable overhead rate variance for March? The variable overhead efficiency variance?
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