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 $ Data Table Direct materials (fabric) Direct labor 2.0 yards per blanket at $9.50 per yard 2.5 direct labor hours per blanket at $11.00 per hour Print Done Data Table 58,050 Actual cost of 6,750 yards of direct material (fabric) purchased Actual yards of direct material (fabric) used. Actual wages for 6,390 hours worked 6,250 66,456 $ Print Done 8.00 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 $ 42.50 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. Actual quantity purchased x Actual price Standard price ) = DM price variance 8,250 8.00 8.50 ) = $ 4.125 F Determine the formula for the quantity variance, then compute the quantity variance for direct materials. Standard price 'x Actual quantity used Standard quantity allowed DM quantity variance 8.50 x 7,650 7,500 1,275 U 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 $ xls $ 7.00 13.30 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. Actual hours x Actual rate Standard rate DL rate variance 910 13.30 14.00 ) = $ 637 F First, determine the formula for the efficiency variance, then compute the efficiency variance for direct labor. = xls x Standard rate 14.00 Actual hours 910 Standard hours allowed 750 DL efficiency variance $ 2,240 U $ x
