Castle Company produces throw blankets that are popular holiday gifts. Standard variable costs relating to a single blanket are given below:
|C||Standard Quantity or Hours||Standard Price or Rate|
|Direct materials||2.62||$5 per yard|
|Direct labor||1.35 Hours||6.8 Per Hour|
|Variable manufacturing overhead||1.35 Hours||$2 per direct labor-hour|
Overhead is applied to production on the basis of direct labor hours. During March, 924 blankets were manufactured and sold. Difference between standard and actual cost per blanket produced during March: $0.10 F.
• Selected information related to the month’s production is given below:
Materials Used Direct Labor Variable manufacturing overhead
Total standard cost allowed* 12100 8500 2500
Actual costs incurred 11500 8407.6 3100
Direct materials price variance 1600 F
Actual 2620 Yard 1400 hours
Direct materials quantity variance $1000 U
Direct labor rate variance 1106 F
Direct labor efficiency variance 1020 U
Variable overhead rate variance 300 U
Variable overhead efficiency variance 300 U
*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:
1. What is the standard cost of a single blanket?
2. What was the actual cost per blanket produced during March?
3. How many standard yards of material are required per blanket?
4. What was the direct materials price variance for March? F
5. What is the standard direct labor rate per hour? = 6.8 Per Hour
6. What was the direct labor rate variance for March? The direct labor efficiency variance?
7. What was the variable overhead rate variance for March? 300 U The variable overhead efficiency variance?
8. Prepare a standard cost card for one blanket.