Castle Company produces throw blankets that are popular holiday gifts. Standard variable costs relating to a single blanket are given below
Standard Quantity or Hours
Standard Price or Rate
$5 per yard
$6.80 per DLH
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.
Selected information related to the monthâ€™s production is given below:
Variable Manufacturing Overhead
Actual costs incurred
Direct materials price variance
Direct materials quantity variance
Direct labor rate variance
Direct labor efficiency variance
Variable overhead rate variance
Variable overhead efficiency variance
*For this monthâ€™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. What was the direct materials price variance for March?
4. What was the direct labor rate variance for March? The direct labor efficiency variance?
5. What was the variable overhead rate variance for March? The variable overhead efficiency variance?