Kelly Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket (Click the icon to view the standards.) Actual results from last month's production of 2.500 blankets are as follows: (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 Requirements 1. What is the standard direct material cost for one blanket? 2. What is the actual cost per yard of fabric purchased? 3. Calculate the direct material price and quantity variances. 4. What is the standard direct labor cost for one blanket? 5. What is the actual direct labor cost per hour? 6. Calculate the direct labor rate and efficiency variances 7. Analyze each variance and speculate as to what may have caused that variance 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? Print Done Data table Actual cost of 8,750 yards of direct material (fabric) purchased...$ 75,250 Actual yards of direct material (fabric) used. 8,250 Actual wages for 5,120 hours worked... ........$ 88,576 Print CTTC Done Data table Direct materials (fabric).......... Direct labor.....…… Print 3.0 yards per blanket at $9.00 per yard .2 direct labor hours per blanket at $18.00 per hour Done X
Kelly Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket (Click the icon to view the standards.) Actual results from last month's production of 2.500 blankets are as follows: (Click the icon to view the actual results.) Read the requirements Requirement 1. What is the standard direct material cost for one blanket? (Round your answer to the nearest cent.) The standard direct material cost for one blanket is Requirements 1. What is the standard direct material cost for one blanket? 2. What is the actual cost per yard of fabric purchased? 3. Calculate the direct material price and quantity variances. 4. What is the standard direct labor cost for one blanket? 5. What is the actual direct labor cost per hour? 6. Calculate the direct labor rate and efficiency variances 7. Analyze each variance and speculate as to what may have caused that variance 8. Look at all four variances together (the big picture). How might they all be related? What variance is very likely to have caused the other variances? Print Done Data table Actual cost of 8,750 yards of direct material (fabric) purchased...$ 75,250 Actual yards of direct material (fabric) used. 8,250 Actual wages for 5,120 hours worked... ........$ 88,576 Print CTTC Done Data table Direct materials (fabric).......... Direct labor.....…… Print 3.0 yards per blanket at $9.00 per yard .2 direct labor hours per blanket at $18.00 per hour Done X
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Kelly Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this blanket:
(Click the icon to view the standards.)
Actual results from last month's production of 2,500 blankets are as follows:
(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
Requirements
1. What is the standard direct material cost for one blanket?
2. What is the actual cost per yard of fabric purchased?
3. Calculate the direct material price and quantity variances.
4. What is the standard direct labor cost for one blanket?
5. What is the actual direct labor cost per hour?
6. Calculate the direct labor rate and efficiency variances.
7. Analyze each variance and speculate as to what may have caused that
variance.
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?
Print
Done
X
Data table
Actual cost of 8,750 yards of direct material (fabric) purchased... $ 75,250
Actual yards of direct material (fabric) used
8,250
88,576
Actual wages for 5,120 hours worked..
Print
Done
$
Data table
Direct materials (fabric).
Direct labor.
Print
3.0 yards per blanket at $9.00 per yard
.2 direct labor hours per blanket at $18.00 per hour
Done
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