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 of Hours||Standard Price or Rate||Standard Cost|
|Direct materials||?||$5 per yard||$?|
|Variable manufacturing overhead||?||$2 per direct labor-hour||$?|
|Total standard cost||$?|
Overhead is applied to production on the basis of direct labor hours. During March, 924 blankets were manufactured and sold. 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*||$12,100||$8,500||$2,500|
|Actual costs incurred||$11,500||?||$3,100|
|Direct materials price variance||?|
|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:
- What is the standard cost of a single blanket?
- What was the actual cost per blanket produced during March?
- How many standard yards of material are required per blanket?
- What was the direct materials price variance for March?
- What is the standard direct labor rate per hour?
- What was the direct labor rate variance for March? The direct labor efficiency variance?
- What was the variable overhead rate variance for March? The variable overhead efficiency variance?
- Prepare a standard cost card for one blanket.