- Kelsey Fabrics Manufactures A Specialty Monogrammed Blanket The Following Are The Cost Standards For This Blanket Cli 1 (11.82 KiB) Viewed 11 times
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month's production of 1,800 blankets are as follows: ew the actual results.) Data table 4.0 yards per blanket at $8.00 per yard Direct materials (fabric)... Direct labor... 0.5 direct labor hours per blanket at $14.00 per hour Print Done formaid for the price vananice, ten compute the price variance for direct materials. DM price variance x( - X formula to the ons used: DM=
in to view the standards.) am last month's production of 1,800 blankets are as follows: on to view the actual results.) ments. - X Data table Da W Actual cost of 8,460 yards of direct material (fabric) purchased... $ 64,296 irect 7,910 Actual yards of direct material (fabric) used Actual wages for 1,020 hours worked.. $ 13,566 2. WH st per 3. Ca Print Done and the als) me the formula for t DM price variance D D W - X formula to the tions used: DM =
Mutuar (Click the icon to view the actual results.) Read the requirements. Requirement 1. What is the standard direct material cost for one blanket? (Round your answer to the nearest cent.) The standard direct material cost for one blanket is Requirement 2. What is the actual cost per yard of fabric purchased? (Round your answer to the nearest cent.) The actual cost per yard of fabric purchased Requirement 3. Calculate the direct material price and quantity variances (Enter the variances as positive numbers. Enter currency amounts in the formula to the nearest cent and then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U) Abbreviations used: DM= Direct materials) First determine the formula for the price variance, then compute the price variance for direct materials. *( DM price variance Determine the formula for the quantity variance, then compute the quantity variance for direct materials. DM quantity vanance
Actual results from last month's production of 1,800 blankets are as follows: (Click the icon to view the actual results.) Read the requirements. Determine the formula for the quantity variance, then compute the quantity variance for direct materials. x( DM quantity variance Requirement 4. What is the standard direct labor cost for one blanket? (Round your answer to the nearest cent.) ) The standard direct labor cost for one blanket is Requirement 5. What is the actual direct labor cost per hour? (Round your answer to the nearest cont.) The actual direct labor cost per hour is Requirement 6. Calculate the direct labor (DL) rate and efficiency variances. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U) Abbreviations used: DL= Direct labor) First, determine the formula for the rate variance, then compute the rate variance for direct labor DL rate variance
unt Kelsey Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket Chok the icon to view the standards.) Actual results from last month's production of 1,800 blankets are as follows: (Click the loon to view the actual results) Read the requirements CHLO Requirement 6. Calculate the direct labor (DL) rate and efficiency variances. (Enter the variancos as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dolar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL Direct labor) First, determine the formula for the rate variance, then compute the rate variance for direct labor ). DL rate variance "( First, determine the formula for the efficiency variance, then compute the efficiency variance for direct labor ( DL efficiency variance *( Requirement 7. Analyze each variance and speculate as to what may have caused that variance The DM price variance and DM quantity varianos may have been caused by cause waste The
Requirement 7. Analyze each variance and speculate as to what may have caused that variance. The DM price variance and DM quantity variance may have been caused by cause waste The DL rate variance and DL efficiency variance may have been caused by The skilled workers command a wage, however, Requirement 8. Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused the other variances? One possible cause of all four variances is This would create leading to Because workforce was used, the DL rate variance was labor hours were required, creating DL efficiency variance. however, given a The