Question

KellyKelly

Fabrics manufactures a specialty monogrammed blanket. The following are the cost standards for this​ blanket:

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​(Click the icon to view the​ standards.)Actual results from last​ month's production of

2 comma 1002,100

blankets are as​ follows:

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​(Click the icon to view the actual​ results.)Read the requirements

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.

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.

		x (		-		)	=	DM price variance
		x (		-		)	=

Determine the formula for the quantity​ variance, then compute the quantity variance for direct materials.

		x (		-		)	=	DM quantity variance
		x (		-		)	=

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​ cent.)

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.

		x (		-		)	=	DL rate variance
		x (		-		)	=

​First, determine the formula for the efficiency​ variance, then compute the efficiency variance for direct labor.

		x (		-		)	=	DL efficiency variance
		x (		-		)	=

Requirement 7. Analyze each variance and speculate as to what may have caused that variance.

The

▼

favorable

unfavorable

DM price variance and

▼

favorable

unfavorable

DM quantity variance may have been caused by

▼

purchasing inferior raw materials

purchasing superior quality raw materials

. The

▼

cheaper materials that are of a lesser quality

more expensive materials that are of a higher quality

cause

▼

less

more

waste.The

▼

favorable

unfavorable

DL rate variance and

▼

favorable

unfavorable

DL efficiency variance may have been caused by

▼

utilizing a more-skilled workforce

utilizing a less-skilled workforce

. The

▼

higher

less

skilled workers command a

▼

higher

lower

​wage, however,

▼

do not work as quickly as a more experienced workforce

work more efficiently than a less experienced workforce

.

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

▼

the initial purchase of inferior raw materials

the initial purchase of superior raw materials

. This would create

▼

a favorable DM price variance while creating more waste

a favorable DL price variance

an unfavorable DL price variance

an unfavorable DM price variance while reducing waste

leading to

▼

a favorable quantity variance

an unfavorable quantity variance

. Because

▼

a higher skilled

a lower skilled

workforce was​ used, the DL rate variance was

▼

favorable

unfavorable

​, ​however, given a

▼

higher quality material and a more-skilled workforce, less

lower quality material and a less-skilled workforce, more

labor hours were​ required, creating

▼

a favorable

an unfavorable

DL efficiency variance.

Actual cost of 11,550 yards of direct material (fabric) purchased. . . . .

$107,415

Actual yards of direct material (fabric) used. . . . . . . . . . . . . . . . . . . . . .

10,850

Actual wages for 3,270 hours worked. . . . . . . . . . . . . . . . . . . . . . . . . .

$53,628

Direct materials (fabric). . . . . . . . . . . . . . . . . . .	5.0 yards per blanket at $10.00 per yard
Direct labor. . . . . . . . . . . . . . . . . . . . . . . . . . .	1.5 direct labor hours per blanket at $17.00 per hour

Answer 1

Dear student, we cannot able to post solution more than four sub parts of question as per our policy.

Answer in your format
Answer 1	The standard direct material cost for one blanket is (5*10)			$        50.00
Answer 2	The actual cost per yard of fabric purchased (107415/11550)			$          9.30
Answer 3
Material price​ variance
Actual quantity purchased in Yards	Standard price per Yard	Actual price per Yard	DM price Variance
11550	$    10.00	$       9.30	8,085	F
Material quantity variance
Standard price per Yard	Actual quantity used in Yards	Standard quantity in Yards	DM quantity Variance
$    10.00	10850	10500	3,500	U
Answer 4	Standard direct labor cost for one blanket is (1.5*17)			$        25.50

Calculation parts

	Minus sign indicate unfavorable variance.
	Measure	Yard
	Standard price per Yard	$          10.00
107415/11550	Actual price per Yard	$            9.30
2100*5	Standard quantity in Yards	10500
	Actual quantity purchased in Yards	11550
	Actual quantity used in Yards	10850
	Standard price per Yard	10.00
Less	Actual price per Yard	-9.30
	Difference	0.70
Multiply	Actual quantity purchased in Yards	11550
	Material price variance	$          8,085
	Indicate	Favorable
	Standard quantity in Yards	10500
Less	Actual quantity used in Yards	-10850
	Difference	-350
Multiply	Standard price per Yard	10.00
	Material quantity variance	$        (3,500)
	Indicate	Unfavorable

	Minus sign indicate unfavorable variance.
	Measure	Hour
	Standard price per Hour	$    17.00
53628/3270	Actual price per Hour	$    16.40
2100*1.5	Standard labor Hours	3150
	Actual labor Hours	3270
	Standard price per Hour	17.00
Less	Actual price per Hour	-16.40
	Difference	0.60
Multiply	Actual labor Hours	3270
	Labor rate variance	$    1,962
	Indicate	Favorable
	Standard labor Hours	3150
Less	Actual labor Hours	-3270
	Difference	-120
Multiply	Standard price per Hour	17.00
	Labor efficiency variance	$ (2,040)
	Indicate	Unfavorable