Castle Company_Standard Costing

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  • Castle Company

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


Direct labor




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*




Actual costs incurred




Direct materials price variance






 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:

    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?
    5. What is the standard direct labor rate 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?  The variable overhead efficiency variance?
    8. Prepare a standard cost card for one blanket.



    • 8 years ago
    Castle Company_Standard Costing

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