Castle Company (50 points)
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:
Get Professional Help with Your Research Essay Paper Today From Our Student Essay Service!!
|
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
|
|||
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?
