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Green Blankets, Inc. uses a standard cost system to plan, direct, and control operations. The company converts green yarn into 3 x 5 blankets and
Green Blankets, Inc. uses a standard cost system to plan, direct, and control operations. The company converts green yarn into x blankets and sells them to distributors. favorable
unfavorable
Management allocates variable and fixed overhead based on direct labor hours.
Green Blankets, Inc.
Partial Income Statement
For the month ended July XX
actual budget AC SC x AQ
Sales in units AQ SQ x SC
Average sales price per unit AQ x ACSQ x SC
AFO BFO
Sales revenue total budgeted production X standard quantity for one blanket
Variable manufacturing costs total cost total quantity
Direct materials budgeted fixed overhead allocated
Direct Labor actual budget
Allocated overhead
Fixed manufacturing costs
Allocated overhead
Cost of Goods Manufactured and sold
Gross Profit $ $
COMPUTE THE DIRECT MATERIALS COST VARIANCE
The standard amount of yarn for one blanket is yards
Select the correct formula:
What is the total quantity of direct materials budgeted SQ yards
Select the correct formula:
What is the standard direct materials cost per unit SC per yard
Direct materials purchased and used AQ: yards of green yarn
Select the correct formula:
What is the actual direct materials cost per unit AC per yard
Select the correct formula:
What is the direct materials cost variance?
Interpret this variance
COMPUTE THE DIRECT MATERIALS EFFICIENCY VARIANCE
Select the correct formula:
What is the direct materials efficiency variance?
Interpret this variance
COMPUTE THE DIRECT LABOR COST VARIANCE
The standard amount of time for one blanket is: hours
Select the correct formula:
What is the total quantity of direct LABOR budgeted SQ hours
Select the correct formula:
What is the standard direct labor cost per hour SC per hour
Direct labor incurred AQ: hours
Select the correct formula:
What is the actual direct labor cost per hour AC per hour
Select the correct formula:
What is the direct labor cost variance?
Interpret this variance
COMPUTE THE DIRECT LABOR EFFICIENCY VARIANCE
Select the correct formula:
What is the direct labor efficiency variance?
Interpret this variance
COMPUTE THE VARIABLE OVERHEAD COST VARIANCE
The standard amount of time for one blanket is: hours
Select the correct formula:
What is the total quantity of direct LABOR budgeted SQ hours
Select the correct formula:
What is the standard variable overhead cost per hour SC per hour
Direct labor incurred AQ: hours
Select the correct formula:
What is the actual variable overhead cost per hour AC per hour
Select the correct formula:
What is the variable overhead cost variance?
Interpret this variance
COMPUTE THE VARIABLE OVERHEAD EFFICIENCY VARIANCE
Select the correct formula:
What is the variable overhead efficiency variance?
Interpret this variance
COMPUTE THE FIXED OVERHEAD VARIANCE
Select the correct formula:
What is the fixed overhead variance?
Interpret this variance
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