Castle Company produces throw blankets that arepopular holiday gifts. Standard variable costs relatingto a single blanket are given below
Standard Quantity orHours
Standard Price or Rate
Standard Cost
Direct materials
2.62 yards
$5 per yard
$?
Direct labor
1.35 DLH
$6.80 per DLH
$?
Variable manufacturingoverhead
1.35 DLH
$2 per direct labor-hour
$?
Total standard cost
$?
Overhead is applied to production on the basisof direct labor hours. During March,924 blankets were manufactured andsold.
Selected information related to themonth
Castle Company produces throw blankets that arepopular holiday gifts. Standard variable costs relatingto a single blanket are given below
Standard Quantity orHours | Standard Price or Rate | Standard Cost | |
Direct materials | 2.62 yards | $5 per yard | $? |
Direct labor | 1.35 DLH | $6.80 per DLH | $? |
Variable manufacturingoverhead | 1.35 DLH | $2 per direct labor-hour | $? |
Total standard cost | $? |
Overhead is applied to production on the basisof direct labor hours. During March,924 blankets were manufactured andsold.
Selected information related to themonth
Related questions
Vitalite, Inc., produces a number of products, including abody-wrap kit. Standard variable costs relating to a single kit aregiven below: |
| StandardQuantity or Hours | StandardPrice or Rate | Standard Cost | ||
| Directmaterials | ? | $6.00 peryard | $ ? | |
| Direct labor | ? | ? | ? | |
| Variable manufacturingoverhead | ? | $2.00 perdirect labor-hour | ? | |
| Total standard costper kit | $46.80 | |||
During August, 530 kits weremanufactured and sold. Selected information relating to the monthâsproduction is given below: |
| MaterialsUsed | DirectLabor | Variable Manufacturing Overhead | ||
| Total standardcost* | ? | $7,420 | $1,484 | |
| Actual costsincurred | $14,100 | ? | $1,570 | |
| Materials pricevariance | ? | |||
| Materials quantityvariance | $ 1,020 U | |||
| Labor ratevariance | ? | |||
| Labor efficiencyvariance | ? | |||
| Variable overheadrate variance | ? | |||
| Variable overheadefficiency variance | ? | |||
| *For the month'sproduction. |
| The following additionalinformation is available for Augustâs production of kits: |
| Actual directlabor-hours | 880 | |
| Difference betweenstandard and actual cost per kit produced during August | $0.20 | U |
| Required: |
| 1. | What was the total standard cost of the materials used duringAugust?
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| 5. | What was the labor rate variance for August? The laborefficiency variance? (Do not round your intermediatecalculations. Indicate the effect of each variance by selecting "F"for favorable, "U" for unfavorable, and "None" for no effect (i.e.,zero variance)) | ||||||||||||
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| 6. | What was the variable overhead rate variance for August? Thevariable overhead efficiency variance?(Do not roundintermediate calculations. Indicate the effect of each variance byselecting "F" for favorable, "U" for unfavorable, and "None" for noeffect (i.e., zero variance)) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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