Castle Company produces throw blankets



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

Standard Cost

Direct materials

2.62 yards

$5 per yard


Direct labor

1.35 DLH

$6.80 per DLH


Variable manufacturing overhead

1.35 DLH

$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 month’s production is given below:

Materials Used

Direct Labor

Variable Manufacturing Overhead

Actual costs incurred




Direct materials price variance



2,620 yards

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. 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?


There are no reviews yet.

Be the first to review “Castle Company produces throw blankets”

Your email address will not be published. Required fields are marked *