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*

$12,100 

$8,500 

$2,500 

Actual costs incurred

$11,500 

?

$3,100 

Direct materials price variance

?

 

 

Actual

?

 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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    • attachment
      castle_company_standard_costing.xlsx